<PAGE>
WELLS
FARGO
FUNDS
Annual Report
M O N E Y M A R K E T F U N D S
March 31, 2000
[GRAPHIC]
SERVICE CLASS
CALIFORNIA TAX-FREE MONEY MARKET FUND
CASH INVESTMENT MONEY MARKET FUND
GOVERNMENT MONEY MARKET FUND
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
100% TREASURY MONEY MARKET FUND
PRIME INVESTMENT MONEY MARKET FUND
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND
<PAGE>
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TABLE OF CONTENTS
LETTER TO SHAREHOLDER..........................................................1
---------------------------------------------------------------------
PERFORMANCE HIGHLIGHTS
---------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND........................................2
CASH INVESTMENT MONEY MARKET FUND............................................4
GOVERNMENT MONEY MARKET FUND.................................................6
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND............................8
100% TREASURY MONEY MARKET FUND.............................................10
PRIME INVESTMENT MONEY MARKET FUND..........................................12
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND...............................14
PORTFOLIO OF INVESTMENTS
---------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND.......................................16
CASH INVESTMENT MONEY MARKET FUND...........................................23
GOVERNMENT MONEY MARKET FUND................................................28
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND...........................31
100% TREASURY MONEY MARKET FUND.............................................40
PRIME INVESTMENT MONEY MARKET FUND..........................................41
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND...............................43
FINANCIAL STATEMENTS
---------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES........................................44
STATEMENTS OF OPERATIONS....................................................46
STATEMENTS OF CHANGES IN NET ASSETS.........................................50
FINANCIAL HIGHLIGHTS........................................................56
NOTES TO FINANCIAL HIGHLIGHTS.................................................58
---------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS.................................................59
---------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT..................................................66
---------------------------------------------------------------------
TAX INFORMATION...............................................................67
---------------------------------------------------------------------
CORE PORTFOLIOS
FINANCIAL STATEMENTS
---------------------------------------------------------------------
STATEMENTS OF OPERATIONS....................................................68
STATEMENTS OF CHANGES IN NET ASSETS.........................................69
FINANCIAL HIGHLIGHTS........................................................71
NOTES TO FINANCIAL STATEMENTS.................................................72
---------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT..................................................74
---------------------------------------------------------------------
LIST OF ABBREVIATIONS.........................................................75
---------------------------------------------------------------------
NOT FDIC INSURED--NO BANK GUARANTEE--MAY LOSE VALUE
<PAGE>
DEAR VALUED SHAREHOLDER,
For investors, the past year was unpredictable. It was a period characterized
by rapidly shifting markets and unprecedented volatility.
During the 12-month period ended March 31, 2000, blue chip stocks soared to a
record high, only to surrender their gains following a series of interest rate
hikes that sent the Dow Jones Industrial Average (the "Dow") into a tailspin.
After a March rally, the Dow recovered most of its losses, yet still remained
down for the year.
In contrast, the Nasdaq Composite Index shattered the 5,000 barrier led by
the turbocharged performance of technology stocks -- particularly genetics,
semiconductor and communications stocks. Technology reigned for several
months, while all other sectors scrambled for attention. That changed when the
technology bubble burst in late March, sparking a sell-off that pounded
speculative issues and left many investors concerned about the viability of
many "New Economy" stocks.
WELLS FARGO MONEY MARKET FUNDS
--------------------------------------------------------------------------------
Concerned about the potential for a run-up in inflation, the Federal Reserve
Board (the "Fed") chose to raise interest rates five times over the fiscal
year, with each hike coming in 0.25% increments. Rising interest rates have
helped the Fund's investors capture additional yields on the short-term
securities within each portfolio. And, because we believe that the Fed may be
planning additional rate increases in coming months, our fund managers
presently intend to keep the average maturity of their portfolios relatively
short to take advantage of higher yields.
At the same time, our money market funds, which maintained their $1 per share
price throughout the period, continued to provide investors with a safe,
stable and convenient place to hold cash while evaluating other potential
investment opportunities.
INVESTING IN AN UPSIDE-DOWN MARKET
--------------------------------------------------------------------------------
With dramatic market fluctuations becoming standard events, many investors
are justifiably worried about the market's outlook. So what should you do amid
uncertainty? The first thing to remember is to think long term. Over time, the
market will regain its balance.
More importantly, investors should stick with a clearly defined strategy of
buying and holding a diversified portfolio of stocks, bonds and cash. If you
adhere to your long-term strategy, you won't be as vulnerable to a downturn in
one sector. Chances are that your overall returns will be more steady over
time as well. The fact is, diversification is an effective strategy that
investors can use to their advantage in virtually any market environment.
In closing, thank you for investing with Wells Fargo Funds. With 61 mutual
funds and more than $61 billion in mutual fund assets (as of February 29,
2000), we offer a complete array of mutual funds designed to meet most any
investor need -- in any market environment.
Sincerely,
<TABLE>
<S> <C>
/s/ Michael J. Hogan /s/ W. Rodney Hughes
MICHAEL J. HOGAN W. RODNEY HUGHES
EXECUTIVE VICE PRESIDENT, PRESIDENT,
WELLS FARGO BANK, N.A. WELLS FARGO FUNDS
</TABLE>
1
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
(SERVICE CLASS)
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo California Tax-Free Money Market Fund (the "Fund") seeks to
obtain a high level of income exempt from federal income tax and California
personal income tax, while preserving capital and liquidity, by investing in
high-quality, short-term, U.S. dollar-denominated money market instruments,
primarily municipal obligations.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGER
Kevin Shaughnessy
INCEPTION DATE
01/01/92
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund Service Class shares underperformed the Fund's, the 90-Day Treasury
Bill(1), for the fiscal year ended March 31, 2000, with a return of 2.58%(2)
versus 5.27% for the Index.
During the period, the Federal Reserve Board (the "Fed") maintained its
monetary tightening policy by raising interest rates five times in increments
of 0.25%. Given the short-term nature of the Fund, as items matured within the
Fund they were reinvested at higher yields. In addition to shorter maturing
items, the Fund held roughly 55% of its position in floating rate notes late
in the period. These positions also helped performance, while longer-dated,
fixed-rate notes hurt performance.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fed is expected to continue to tighten monetary policy in an effort to
cool economic growth. Given its large position in floating rate notes, the
Fund has the potential to benefit from interest rate increases. The volatility
in the stock and bond markets may also affect the Fund by creating cash
inflows during market sell-offs causing the Fund's yield to fall, and outflows
during market rallies causing the Fund's yield to rise.
The early part of the second quarter of each year is usually characterized by
higher interest rates driven by large cash outflows from money market funds
used to pay income taxes. This presents an opportunity to increase exposure to
longer-maturity, fixed-rate notes for the Fund at attractive yields. With the
Fund's large position in floating rate notes, it is positioned to potentially
do well in a rising interest rate environment.
2
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
SERVICE CLASS 1.36 2.58 2.77 2.62
BENCHMARK
LIPPER CALIFORNIA TAX-EXEMPT
MONEY MARKET FUNDS
AVERAGE(3) 1.30 2.54 2.85
90-DAY TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 2.88%
7-DAY COMPOUND YIELD 2.91%
30-DAY SIMPLE YIELD 2.85%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 44 DAYS
NUMBER OF HOLDINGS 271
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Floating/Variable Rate Bonds 71%
Municipal Bonds 23%
Floating/Variable Rate Bonds - AMT 6%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
1-2 days 7%
3-14 days 60%
15-29 days 1%
30-59 days 4%
60-89 days 1%
90-179 days 22%
180+ days 5%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has waived all or a portion of its management fees or assumed
responsibility for other expenses pursuant to a contract with the Fund, which
reduces operating expenses and increases total return to shareholders. Without
these reductions the Fund's returns would have been lower. The contract's
minimum period is through November 8, 2000, and continues thereafter unless the
Board of Trustees acts to alter or remove the waivers.
Performance shown for the Service Class shares of the Wells Fargo California
Tax-Free Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Class A shares of the Stagecoach California Tax-Free Money
Market Fund, its predecessor fund. Effective at the close of business
November 5, 1999, the Stagecoach Funds were reorganized into the Wells Fargo
Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper California Tax-Exempt
Money Market Funds Average is an average of funds that invest in municipal
obligations with dollar-weighted average maturities of less than 90 days. You
cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
3
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Cash Investment Money Market Fund (the "Fund") seeks to
provide investors with high current income consistent with preservation of
capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
10/14/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares underperformed the Fund's benchmark, the
90-Day Treasury Bill(1), for the year ending March 31, 2000, with a return of
5.16%(2) versus 5.27% for the benchmark.
Rising interest rates contributed to the Fund's solid performance. During the
past year, the Federal Reserve Board raised interest rates in 0.25% increments
on five occasions to cool the nation's economy and to offset mounting
inflationary pressures. In total, the Federal Funds Rate, the most sensitive
indicator of the direction of interest rates, increased from 4.75% to 6%
during this period.
Rising interest rates also sent yields on short-term securities upward,
creating opportunities for the Fund's management team to capture additional
yields. The Fund's performance was attributed to maintaining an average
maturity that was slightly higher than its peer group, and through the
purchase of certain out-of-favor securities -- such as asset-backed commercial
paper and variable rate notes -- which added incremental yield to the Fund.
Plus, as new cash flowed into the portfolio, the management team replaced
maturing securities with longer term, higher yielding securities to benefit
from more favorable yields.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
In an environment characterized by further possible interest rate hikes, the
Fund is well positioned to continue its strong performance. In fact, the
management team views ongoing market volatility as an opportunity to add
securities with more attractive yields to the portfolio.
4
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 2.73 5.16 5.31 5.09
BENCHMARK
LIPPER MONEY MARKET FUNDS
AVERAGE(3) 2.50 4.72 4.93 4.73
90-DAY TREASURY BILL 2.82 5.27 5.17 4.96
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.77%
7-DAY COMPOUND YIELD 5.94%
30-DAY SIMPLE YIELD 5.67%
30-DAY COMPOUND YIELD 5.82%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 74 DAYS
NUMBER OF HOLDINGS 153
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 65%
Floating/Variable Rate Bonds 9%
Fixed-Rate Notes 8%
Asset-Backed Securities 6%
Repurchase Agreements 4%
CDs 4%
Time Deposits 4%
</TABLE>
MATURITY DISTRIBUTION (AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 25%
15-29 days 16%
30-59 days 17%
60-89 days 12%
90-179 days 19%
180+ days 11%
</TABLE>
--------------------------------------------------------------------------------
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has waived all or a portion of its management fees or assumed
responsibility for other expenses pursuant to a contract with the Fund, which
reduces operating expenses and increases total return to shareholders. Without
these reductions the Fund's returns would have been lower. The contract's
minimum period is through November 8, 2000, and continues thereafter unless the
Board of Trustees acts to alter or remove the waivers.
Performance shown for the Service Class shares of the Wells Fargo Cash
Investment Money Market Fund for the periods prior to November 8, 1999, reflects
performance of the Service Class (formerly Single Class) shares of the Norwest
Advantage Cash Investment Fund (the accounting survivor of a merger of the
Norwest Advantage Cash Investment Fund and the Stagecoach Prime Money Market
Fund at the close of business November 5, 1999), its predecessor fund. Effective
at the close of business on November 5, 1999, the Stagecoach Funds and the
Norwest Advantage Funds were reorganized into the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper Money Market Funds
Average is an average of funds that invest in high quality financial instruments
rated in the top two grades with dollar-weighted average maturities of less than
90 days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
5
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND (SERVICE CLASS)
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Government Money Market Fund (the "Fund") seeks to provide
high current income consistent with preservation of capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
11/16/87
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service class shares underperformed the Fund's benchmark, the
90-Day Treasury Bill(1), for the fiscal year ending March 31, 2000, with a
return of 4.95%(2) versus 5.27% for the benchmark.
Over the past year, rising interest rates had a significant affect on the
Fund's performance. During the period, the Federal Reserve Board initiated a
series of five separate 0.25% increases designed to cool the nation's
fast-growing economy and offset inflationary pressures. Since the Fund invests
approximately 30% of its assets in short-term repurchase agreements, it was
able to capture incremental increases in interest rates over time to boost
investor returns. At the same time, the Fund's management team maintained its
exposure to floating rate securities to benefit from higher yields on these
securities.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With more interest rate hikes forecast throughout the year, the Fund's
management team will continue to employ a "barbell portfolio strategy,"
investing in short-term securities to mitigate against further rate hikes. And
in a financial marketplace characterized by rising interest rates, the Fund
should continue to outperform its peer group due to its current asset
allocation strategy.
6
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 2.61 4.95 5.10 4.87
BENCHMARK
LIPPER U.S. GOVERNMENT MONEY
MARKET FUNDS AVERAGE(3) 2.48 4.70 4.90 4.64
90-DAY TREASURY BILL 2.82 5.27 5.17 4.96
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.53%
7-DAY COMPOUND YIELD 5.68%
30-DAY SIMPLE YIELD 5.41%
30-DAY COMPOUND YIELD 5.54%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 53 DAYS
NUMBER OF HOLDINGS 59
</TABLE>
MATURITY DISTRIBUTION(7)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
FHLMC 29%
Repurchase Agreements 29%
FNMA 24%
FHLB 15%
Commercial Paper 2%
SLMA 1%
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 45%
15-29 days 7%
30-59 days 23%
60-89 days 8%
90-179 days 9%
180+ days 8%
</TABLE>
--------------------------------------------------------------------------------
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has waived all or a portion of its management fees or assumed
responsibility for other expenses pursuant to a contract with the Fund, which
reduces operating expenses and increases total return to shareholders. Without
these reductions the Fund's returns would have been lower. The contract's
minimum period is through November 8, 2000, and continues thereafter unless the
Board of Trustees acts to alter or remove the waivers.
Performance shown for the Service Class shares of the Wells Fargo Government
Money Market Fund for periods prior to November 8, 1999, reflects performance of
the Service Class (formerly Single Class) shares, adjusted for expenses, of the
Norwest Advantage U.S. Government Fund (the accounting survivor of a merger of
the Norwest Advantage U.S. Government Fund and the Stagecoach Government Money
Market), its predecessor fund. Effective at the close of business November 5,
1999, the Stagecoach Funds and the Norwest Advantage Funds were reorganized into
the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper U.S. Treasury Money
Market Funds average is an average of funds that invest principally in U.S.
Treasury obligations with dollar weighted average maturities of less than 90
days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
7
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND (SERVICE CLASS)
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo National Tax-Free Institutional Money Market Fund (the "Fund")
seeks to provide investors with high current income exempt from federal income
taxes consistent with preservation of capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
01/07/88
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares slightly underperformed the Fund's peer
group, the Lipper Institutional Tax-Exempt Money Market Funds Average(1), for
the fiscal year ended March 31, 2000, with a return of 3.07%(2) compared to
3.12% for the Lipper average.
Fixed-income securities of shorter maturities experienced rising yields
throughout most of the 12-month period as the Federal Reserve Board raised
interest rates five times -- with each rate increase coming in 0.25%
increments -- in an attempt to slow the booming economy. The Fund's managers
looked for opportunities to increase average yield in the Fund by buying nine-
to 12-month securities when those securities were attractive relative to other
maturity sectors. Because of this strategy, the Fund had a longer average
maturity than most its peers during the quarter, and the Fund benefited from
that strategy.
Cash flow was volatile, especially late in the period, as shareholders
prepared to pay taxes. The Fund increased liquidity in anticipation of such
cash outflows, which translated into lower yields. More than 70% of the Fund
was positioned in variable rate demand notes during the quarter. A dramatic
rise in these short rates would likely enhance the yield in the Fund. If the
short rates were to precipitously fall, the Fund's yield would decline.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
Additional rate increases are forecast for the remainder of the year. The
Fund is consistently managed to maintain a stable asset value of $1 per share
given any level of volatility.
8
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10-Year
<S> <C> <C> <C> <C>
SERVICE CLASS 1.61 3.07 3.28 3.28
BENCHMARK
LIPPER INSTITUTIONAL
TAX-EXEMPT MONEY MARKET
FUNDS AVERAGE 1.64 3.12 3.25 3.30
90-DAY TREASURY BILL(3) 2.82 5.27 5.17 4.96
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 3.44%
7-DAY COMPOUND YIELD 3.49%
30-DAY SIMPLE YIELD 3.38%
30-DAY COMPOUND YIELD 3.43%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 50 DAYS
NUMBER OF HOLDINGS 213
</TABLE>
MATURITY DISTRIBUTION
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Municipal Demand Notes 73%
Municipal "PUT" 9%
Municipal Notes 8%
Municipal Bonds 4%
Municipal Commercial Paper 4%
Bond Anticipatory Notes 2%
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 73%
15-29 days 2%
30-59 days 5%
60-89 days 3%
90-179 days 9%
180+ days 8%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Source: Lipper Analytical Services, Inc. The Lipper Institutional
Tax-Exempt Money Market Funds average is an average of funds that invest in
municipal obligations with dollar-weighted average maturities of less than 90
days. You cannot invest directly in a Lipper average.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment returns will fluctuate. The Fund's yield figures more
closely reflect the current earnings of the Fund than the total return figures.
The Fund's manager has waived all or a portion of its management fees or assumed
responsibility for other expenses pursuant to a contract with the Fund, which
reduces operating expenses and increases total return to shareholders. Without
these reductions the Fund's returns would have been lower. The contract's
minimum period is through November 8, 2000, and continues thereafter unless the
Board of Trustees acts to alter or remove the waivers.
Performance shown for the Service Class shares of the Wells Fargo National
Tax-Free Institutional Money Market Fund for periods prior to November 8, 1999,
reflects performance of the Service Class (formerly Institutional Class) shares
of the Norwest Advantage Municipal Money Market Fund (the accounting survivor of
a merger of the Norwest Advantage Municipal Money Market Fund and the Stagecoach
National Tax-Free Money Market Fund), its predecessor fund. Effective at the
close of business November 5, 1999, the Stagecoach Funds and the Norwest
Advantage Funds were reorganized into the Wells Fargo Funds.
(3) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(4) Portfolio holdings are subject to change.
9
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND
(SERVICE CLASS)
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo 100% Treasury Money Market Fund (the "Fund") seeks stability
of principal and current income that is exempt from most state and local
personal income taxes.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
12/03/90
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares underperformed the Fund's benchmark, the
90-Day Treasury Bill(1), for the year ending March 31, 2000, with a return of
4.67%(2) versus 5.27% for the benchmark.
Changing interest rates created attractive opportunities for the Fund's
management team to capture higher yields on Treasury securities. During the
year, the Federal Reserve Board implemented a series of interest rate hikes
designed to cool the nation's economy and offset mounting inflationary
pressures. During this period, the Federal Funds Rate, the most sensitive
indicator of the direction of interest rates, increased from 4.75% to 6%.
Since the Fund invests approximately 25% of its assets in daily investments,
the management team capitalized on incremental increases in interest rates to
secure higher yields -- and to outperform funds with similar investment
objectives.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With additional rate increases forecast during the year, the management team
will continue to implement its "barbell" investment strategy. This strategy
entails purchasing short-term securities to mitigate against further rate
hikes, while investing in certain longer-term -- and higher yielding --
securities when opportunities arise.
Also, the Fund's flexible investment policy enables it to increase its
interest rate sensitivity through short-term daily investments and
simultaneous buy/sell transactions. All in all, the Fund is well positioned to
outperform its peers amid an environment characterized by rising interest
rates.
10
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year Since Inception
<S> <C> <C> <C> <C>
SERVICE CLASS 2.46 4.67 4.85 4.48
BENCHMARK
LIPPER U.S. TREASURY MONEY
MARKET FUNDS AVERAGE(3) 2.34 4.45 4.74
90-DAY U.S. TREASURY BILL 2.82 5.27 5.17
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.34%
7-DAY COMPOUND YIELD 5.48%
30-DAY SIMPLE YIELD 5.24%
30-DAY COMPOUND YIELD 5.37%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 51 DAYS
NUMBER OF HOLDINGS 14
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Bills 62%
U.S. Treasury Notes 38%
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
15-29 days 53%
30-59 days 32%
90-179 days 13%
180+ days 2%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds. The Government guarantee applies to the underlying
securities and NOT to shares of the Fund.
(1) Treasury Bills are guaranteed by the U.S. Government and, if held to
maturity, offer a fixed rate of return and fixed principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's manager has waived all or a portion of its
management fees or assumed responsibility for other expenses pursuant to a
contract with the Fund, which reduces operating expenses and increases total
return to shareholders. Without these reductions the Fund's returns would have
been lower. The contract's minimum period is through November 8, 2000, and
continues thereafter unless the Board of Trustees acts to alter or remove the
waivers.
Performance shown for the Service Class shares of the Wells Fargo 100%
Treasury Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Service Class (formerly Single Class) shares, adjusted for
expenses, of the Norwest Advantage Treasury Fund, its predecessor fund.
Effective at the close of business November 5, 1999, the Norwest Advantage Funds
were reorganized into the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper U.S. Treasury Money
Market Funds average is an average of funds that invest principally in U.S.
Treasury obligations with dollar weighted average maturities of less than 90
days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
11
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
PRIME INVESTMENT MONEY MARKET FUND
(SERVICE CLASS)
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Prime Investment Money Market Fund (the "Fund") seeks to
provide investors with a high level of income exempt from federal income tax,
while preserving capital and liquidity.
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
09/02/98
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund outperformed its benchmark, the Merrill Lynch Treasury Bill One-Year
Index(1), for the year ending March 31, 2000, with a return of 5.08%(2) versus
4.31% for the Index.
Rising interest rates contributed to the Fund's performance during the
period. During the past year the Federal Reserve Board raised interest rates
on five separate occasions -- with each increase coming in
quarter-percentage-point increments -- to cool the nation's fast-growing
economy and to offset inflationary pressures.
Amid an environment of rising rates, the Fund captured higher yields on the
short-term securities that comprise the portfolio. At the same time, an
emphasis on diversification among the Fund's high quality securities helped
the management team lock in gains from securities within several out-of-favor
sectors, including asset-backed commercial paper and variable rate notes. Fund
managers also deployed new cash to replace maturing short-term securities with
longer-maturing securities -- namely securities with three- to six-month
maturities -- to benefit from higher yields.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
The Fund is well positioned to potentially continue its strong performance in
an environment characterized by rising interest rates. In fact, the management
team views ongoing market volatility as an opportunity to add securities with
more attractive yields to the Fund.
12
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year Since Inception
<S> <C> <C> <C>
SERVICE CLASS 2.68 5.08 5.02
BENCHMARK
LIPPER INSTITUTIONAL MONEY MARKET
FUNDS AVERAGE(3) 2.72 5.15
MERRILL LYNCH ONE-YEAR TREASURY
BILL INDEX 1.95 4.31
90-DAY TREASURY BILL INDEX(1) 2.82 5.27
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.68%
7-DAY COMPOUND YIELD 5.84%
30-DAY SIMPLE YIELD 5.50%
30-DAY COMPOUND YIELD 5.64%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 41 DAYS
NUMBER OF HOLDINGS 49
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Commercial Paper 62%
Repurchase Agreements 27%
Time Deposits 8%
Floating/Variable Rate Bonds 2%
Asset-Backed Securities 1%
</TABLE>
MATURITY DISTRIBUTION
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 50%
15-29 days 14%
30-59 days 11%
60-89 days 9%
90-179 days 8%
180+ days 8%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Merrill Lynch Treasury Bill One-Year Index. The unmanaged measure of the
performance of the one-year Treasury Bill. Treasury Bills are guaranteed by the
U.S. Government and, if held to maturity, offer a fixed rate of return and fixed
principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's manager has waived all or a portion of its
management fees or assumed responsibility for other expenses pursuant to a
contract with the Fund, which reduces operating expenses and increases total
return to shareholders. Without these reductions the Fund's returns would have
been lower. The contract's minimum period is through November 8, 2000, and
continues thereafter unless the Board of Trustees acts to alter or remove the
waivers.
Performance shown for the Service Class shares of the Wells Fargo Prime
Investment Money Market Fund for periods prior to November 8, 1999, reflects
performance of the Service (formerly Public Entity) shares of the Norwest
Advantage Ready Cash Investment Fund, its predecessor fund. Effective at the
close of business November 5, 1999, the Norwest Advantage Funds were reorganized
into the Wells Fargo Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper Institutional Money
Market Funds average is an average of funds that invest in high quality
financial instruments rated in the top two grades with dollar-weighted average
maturies of less than 90 days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
13
<PAGE>
MONEY MARKET FUNDS PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND (SERVICE CLASS)
INVESTMENT OBJECTIVE
--------------------------------------------------------------------------------
The Wells Fargo Treasury Plus Institutional Money Market Fund (the "Fund")
seeks to provide investors with current income and stability of principal by
investing only in obligations issued or guaranteed by the U.S. Treasury and in
notes and other instruments, including repurchase agreements, collateralized
or secured by such obligations, which have remaining maturities not exceeding
397 days (13 months).
ADVISOR
Wells Fargo Bank, N.A.
SUB-ADVISOR
Wells Capital Management
FUND MANAGERS
Dave Sylvester
Laurie White
Robert Leuty
INCEPTION DATE
10/01/85
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
The Fund's Service Class shares outperformed against the Fund's benchmark,
the Merrill Lynch Treasury Bill One-Year Index(1), for the year ending
March 31, 2000, with a return of 4.76%(2) versus 4.31% for the Index.
The impact of rising interest rates fueled Fund performance. During the past
year, the Federal Reserve Board raised short-term interest rates five
times -- with each rate increase coming in 0.25% increments -- to offset
inflationary pressures and curb the nation's fast-growing economy. As a
result, the Fund was able to capture additional yields on short-term Treasury
securities, particularly among the repurchase agreements that comprise nearly
35% of the entire portfolio.
STRATEGIC OUTLOOK
--------------------------------------------------------------------------------
With economists forecasting additional rate increases throughout the year,
the Fund's management team will increase the Fund's exposure to repurchase
agreements, thereby shortening the average maturity of the overall portfolio.
In addition, the management team will continue to implement its barbell
investment strategy. This strategy entails purchasing short-term securities to
mitigate against further rate hikes, while investing in certain
longer-term -- and higher yielding -- securities when opportunities arise. All
in all, the Fund is well positioned to continue its strong performance in the
current interest rate environment.
14
<PAGE>
PERFORMANCE HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN(2) (%) (AS OF MARCH 31, 2000)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6-Month 1-Year 5-Year 10 Year
<S> <C> <C> <C> <C>
SERVICE CLASS 2.48 4.76 5.04 4.80
BENCHMARK
LIPPER INSTITUTIONAL U.S.
TREASURY MONEY MARKET
FUNDS AVERAGE(3) 2.50 4.78 5.05 4.87
MERRILL LYNCH TREASURY BILL
ONE-YEAR INDEX 1.95 4.31 5.60
</TABLE>
FUND YIELD SUMMARY
----------------------------------------------
<TABLE>
<S> <C>
7-DAY CURRENT YIELD 5.38%
7-DAY COMPOUND YIELD 5.52%
30-DAY SIMPLE YIELD 5.27%
30-DAY COMPOUND YIELD 5.40%
</TABLE>
FUND CHARACTERISTICS (AS OF MARCH 31, 2000)
----------------------------------------------
<TABLE>
<S> <C>
WEIGHTED AVERAGE MATURITY 55 DAYS
NUMBER OF HOLDINGS 18
</TABLE>
PORTFOLIO COMPOSITION(4)
(AS OF MARCH 31, 2000)
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
U.S. Treasury Notes 41%
Repurchase Agreements 35%
U.S. Treasury Bills 24%
</TABLE>
MATURITY DISTRIBUTION
----------------------------------------------
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
3-14 days 35%
15-29 days 15%
30-59 days 9%
60-89 days 14%
90-179 days 23%
180+ days 4%
</TABLE>
--------------------------------------------------------------------------------
Money market funds are sold without a front-end sales charge or contingent
deferred sales charge. Other fees and expenses apply to a continued investment
in the Fund and are described in the Fund's Statement of Additional Information.
An investment in a Wells Fargo money market fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other government agency.
Although the Wells Fargo money market funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
money market funds.
(1) Merrill Lynch Treasury Bill One-Year Index. The unmanaged measure of the
performance of the one-year Treasury Bill. Treasury Bills are guaranteed by the
U.S. Government and, if held to maturity, offer a fixed rate of return and fixed
principal value.
(2) FIGURES QUOTED REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE
RESULTS. Investment return and principal value of an investment will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost. The Fund's manager has waived all or a portion of its
management fees or assumed responsibility for other expenses pursuant to a
contract with the Fund, which reduces operating expenses and increases total
return to shareholders. Without these reductions the Fund's returns would have
been lower. The contract's minimum period is through November 8, 2000, and
continues thereafter unless the Board of Trustees acts to alter or remove the
waivers.
Performance shown for the Service Class shares of the Wells Fargo Treasury
Plus Institutional Money Market Fund for periods prior to November 8, 1999,
reflects performance of the Service Class shares of the Stagecoach Treasury Plus
Money Market Fund (the accounting survivor of a merger between the Norwest
Advantage Treasury Plus Fund and the Stagecoach Treasury Plus Money Market
Fund), its predecessor fund. Effective at the close of business November 5,
1999, the Stagecoach Funds and the Norwest Advantage Funds were reorganized into
the Wells Fargo Funds. Performance shown for the periods between September 6,
1996 and October 1, 1994 reflects performance of the Pacific American U.S.
Treasury Portfolio, a predecessor portfolio. For the periods prior to
October 1, 1994 the performance shown reflects the performance of the shares of
a portfolio of the Pacific American Funds.
(3) Source: Lipper Analytical Services, Inc. The Lipper Institutional Money
Market Funds average is an average of funds that invest in high quality
financial instruments rated in the top two grades with dollar-weighted average
maturies of less than 90 days. You cannot invest directly in a Lipper average.
(4) Portfolio holdings are subject to change.
15
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES - 86.54%
$ 9,775,000 ABAG FINANCE AUTHORITY FOR
NONPROFIT CORPORATION
CALIFORNIA LUCILE SALTER
PACKARD PROJECT AMBAC INSURED 3.30% 08/01/23 $ 9,775,000
5,480,000 ALAMEDA CA SCHOOL FINANCE
AUTHORITY REVENUE SERIES A 3.30 07/01/18 5,480,000
1,300,000 ALAMEDA-CONTRA COSTA COUNTY CA
SCHOOL FINANCE AUTHORITY
REVENUE SERIES C 3.30 07/01/25 1,300,000
1,700,000 ALHAMBRA CA IDA SUNCLIPSE LOC
-BANK OF AMERICA 3.40 05/01/07 1,700,000
2,705,000 ANAHEIM CA COP POLICE
FACILITIES 3.15 08/01/08 2,705,000
11,850,000 ANAHEIM CA GO 3.35 05/02/00 11,850,000
1,600,000 ANAHEIM CA HFA AMT 3.25 07/15/20 1,600,000
15,000,000 ANAHEIM CA HOUSING REVENUE LOC
-CITIBANK AMT 3.30 12/15/23 15,000,000
4,445,000 ANAHEIM CA MFHR MONTEREY
APARTMENTS SERIES B 3.20 05/15/27 4,445,000
12,400,000 ANAHEIM CA PUBLIC IMPROVEMENT
COP LOC - INDUSTRIAL BANK OF
JAPAN LIMITED 3.15 08/01/19 12,400,000
3,000,000 BARSTOW CA MFHR DESERT VISTA
APARTMENTS LOC - FEDERAL HOME
LOAN BANK OF SAN FRANCISCO 3.30 12/01/20 3,000,000
16,000,000 BUTTE COUNTY CA OFFICE OF
EDUCATIONAL TAX & REVENUE 4.25 11/16/00 16,057,358
5,505,000 CA EDFA COP 3.36 06/01/27 5,505,000
2,895,000 CA EDFA COP SERIES 147 3.41 10/01/27 2,895,000
5,000,000 CALIFORNIA COMMUNITY COLLEGE
FINANCING AUTHORITY SERIES A 4.00 06/30/00 5,010,608
4,390,000 CALIFORNIA EDUCATIONAL
FACILITIES AUTHORITY REVENUE 3.20 10/01/15 4,390,000
6,365,000 CALIFORNIA HEALTH FACILITIES
FINANCING AUTHORITY REVENUE 3.86 12/01/34 6,365,000
5,495,000 CALIFORNIA HEALTH FACILITIES
FINANCING AUTHORITY REVENUE
COP SERIES 202 3.41 07/01/10 5,495,000
5,700,000 CALIFORNIA HFA 3.10 08/01/16 5,700,000
21,000,000 CALIFORNIA HFA REVENUE SERIES
C 3.35 08/01/31 21,000,000
21,475,000 CALIFORNIA HFA REVENUE SERIES
J 3.20 08/01/20 21,475,000
5,000,000 CALIFORNIA HFA REVENUE SERIES
Q 3.20 08/01/20 5,000,000
3,580,000 CALIFORNIA HFA SERIES J-1 3.51 02/01/29 3,580,000
1,500,000 CALIFORNIA HFFA 3.45 09/01/28 1,500,000
4,900,000 CALIFORNIA HFFA 3.15 10/01/22 4,900,000
4,000,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES D 3.20 04/30/00 4,000,000
45,580,000 CALIFORNIA HOUSING FINANCING
AGENCY REVENUE SERIES E 3.40 08/01/00 45,580,000
4,300,000 CALIFORNIA INFRASTRUCTURE &
ECONOMIC DEVELOPMENT FISH
HOUSE PONDS 3.40 09/01/24 4,300,000
3,100,000 CALIFORNIA MFHR DELTA SQUARE
APARTMENTS PROJECT 3.25 10/15/29 3,100,000
7,700,000 CALIFORNIA PCR 3.05 05/15/00 7,700,000
24,160,000 CALIFORNIA PCR 3.36 06/01/14 24,160,000
4,200,000 CALIFORNIA PCR 3.40 05/02/00 4,200,000
5,000,000 CALIFORNIA PCR 3.41 12/01/18 5,000,000
4,785,000 CALIFORNIA PCR 3.45 02/01/18 4,785,000
3,800,000 CALIFORNIA PCR AMT 3.25 12/01/16 3,800,000
5,000,000 CALIFORNIA PCR AMT PACIFIC GAS
& ELECTRIC SERIES D 3.35 01/01/10 5,000,000
1,500,000 CALIFORNIA PCR DAILY REFUNDED 3.35 11/01/26 1,500,000
2,800,000 CALIFORNIA POLLUTION CONTROL
AMT 3.40 11/01/26 2,800,000
2,740,000 CALIFORNIA POLLUTION CONTROL
FINANCING AUTHORITY 3.35 10/01/31 2,740,000
55,000,000 CALIFORNIA PUBLIC CAPITAL
IMPROVEMENTS FINANCING
AUTHORITY REVENUE 4.00 03/01/18 55,000,000
36,900,000 CALIFORNIA SCHOOL CASH RESERVE
PROGRAM SERIES A 4.00 07/03/00 36,968,062
3,100,000 CALIFORNIA SCHOOL FACILITIES
COP SERIES A 3.30 07/01/22 3,100,000
2,695,000 CALIFORNIA SCHOOL FACILITIES
FINANCING CORPORATION SERIES B
BAYERISCHE 3.30 07/01/24 2,695,000
15,565,000 CALIFORNIA STATE 3.36 02/01/15 15,565,000
24,995,000 CALIFORNIA STATE COP SERIES 55
FGIC INSURED 3.41 02/01/13 24,995,000
20,200,000 CALIFORNIA STATE COP SERIES L 3.36 11/01/07 20,200,000
</TABLE>
16
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 45,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152 3.46% 11/01/24 $ 45,000
4,955,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-152D 3.46 11/01/24 4,955,000
265,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153 3.46 11/01/24 265,000
11,675,000 CALIFORNIA STATE CUSTODIAL
RECEIPT CR-153D 3.46 11/01/24 11,675,000
7,000,000 CALIFORNIA STATE DEPARTMENT OF
WATER RESERVE PROJECT REVENUE 3.40 12/01/13 7,000,000
4,600,000 CALIFORNIA STATE DEVELOPMENT
AUTHORITY REVENUE SERIES A 3.25 10/01/26 4,600,000
4,600,000 CALIFORNIA STATE DW&P 3.35 05/02/00 4,600,000
49,200,000 CALIFORNIA STATE DW&P 3.60 08/10/00 49,200,000
11,000,000 CALIFORNIA STATE DWR SERIES
127 3.40 12/01/22 11,000,000
4,950,000 CALIFORNIA STATE EAGLE TRUST
PRIVATE PLACEMENT 3.46 09/01/03 4,950,000
5,000,000 CALIFORNIA STATE ECONOMIC
DEVELOPMENT FINANCING
AUTHORITY REVENUE 3.20 04/01/08 5,000,000
1,800,000 CALIFORNIA STATE ECONOMIC
FINANCING AUTHORITY REVENUE 3.20 04/01/08 1,800,000
5,100,000 CALIFORNIA STATE ECONOMIC
FINANCING AUTHORITY REVENUE 3.30 04/01/08 5,100,000
6,000,000 CALIFORNIA STATE GO 3.00 03/01/21 6,000,000
12,085,000 CALIFORNIA STATE GO 3.36 12/01/18 12,085,000
10,935,000 CALIFORNIA STATE GO 3.36 03/01/20 10,935,000
10,000,000 CALIFORNIA STATE GO 5.00 10/01/00 10,060,086
23,000,000 CALIFORNIA STATE GO ABN AMRO
MUNITOPS COP 3.65 12/05/07 23,000,000
8,176,000 CALIFORNIA STATE GO ABN AMRO
MUNITOPS COP - 1998-25 3.20 07/05/06 8,176,000
17,995,000 CALIFORNIA STATE GO ABN AMRO
MUNITOPS COP 1998-20 3.50 07/05/06 17,995,000
14,380,000 CALIFORNIA STATE GO SERIES A-9 3.85 03/01/02 14,380,000
11,000,000 CALIFORNIA STATE GO SERIES A39 4.00 06/30/00 11,000,000
10,390,000 CALIFORNIA STATE GO SMITH
BARNEY EAGLES TRUST COP 3.46 02/01/06 10,390,000
26,100,000 CALIFORNIA STATE GO SMITH
BARNEY EAGLES TRUST SERIES 94
MBIA INSURED 3.46 09/01/03 26,100,000
2,000,000 CALIFORNIA STATE HFA HOME
MORTGAGE REVENUE MBIA INSURED 3.83 08/01/10 2,000,000
2,600,000 CALIFORNIA STATE HFFA
ADVENTIST HEALTH SYSTEM LOC
TORONTO DOMINION BANK 3.25 08/01/21 2,600,000
5,100,000 CALIFORNIA STATE HFFA
CHILDRENS HOSPITAL MBIA
INSURED 3.15 11/01/21 5,100,000
4,800,000 CALIFORNIA STATE HFFA MEMORIAL
HEALTH SERVICES 3.25 10/01/24 4,800,000
11,970,000 CALIFORNIA STATE HFFA REVENUE
SCRIPPS MEMORIAL HOSPITAL
SERIES B 3.15 12/01/15 11,970,000
6,000,000 CALIFORNIA STATE HFFA SANTA
BARBARA COTTAGE LOC CREDIT
SUISSE 3.25 09/01/15 6,000,000
2,000,000 CALIFORNIA STATE PCFA PACIFIC
GAS & ELECTRIC SERIES A AMT 3.25 12/01/16 2,000,000
17,500,000 CALIFORNIA STATE PCFA SANGER
PROJECT SERIES 90-A LOC -
CREDIT SUISSE 3.25 09/01/20 17,500,000
19,700,000 CALIFORNIA STATE PCR PACIFIC
GAS & ELECTRIC 3.35 11/01/26 19,700,000
4,500,000 CALIFORNIA STATE PUBLIC WORKS 3.46 09/01/17 4,500,000
3,815,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE REGENTS OF THE
UNIVERSITY OF CALIFORNIA
SERIES A 7.00 09/01/15 3,944,043
3,000,000 CALIFORNIA STATE PUBLIC WORKS
BOARD LEASE REVENUE DEPARTMENT
OF CORRECTIONS 7.00 09/01/09 3,101,475
27,000,000 CALIFORNIA STATE REVENUE
ANTICIPATION NOTES SERIES A 4.00 06/30/00 27,044,387
2,500,000 CALIFORNIA STATEWIDE CDA
BARTON HOSPITAL LOC - BANQUE
NATIONALE DE PARIS 3.30 12/01/09 2,500,000
11,100,000 CALIFORNIA STATEWIDE CDA ST
JOSEPH HEALTH SYSTEM 3.20 07/01/08 11,100,000
1,500,000 CALIFORNIA STATEWIDE CDA
SUTTER HEALTH GROUP AMBAC
INSURED 3.40 07/01/15 1,500,000
15,900,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY COP 3.45 04/01/28 15,900,000
10,000,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY COP
SERIES 176 3.41 08/15/27 10,000,000
12,325,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY MFHR 3.61 08/01/36 12,325,000
9,455,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT AUTHORITY MFHR 3.76 05/06/30 9,455,000
56,000,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT TAX REVENUE
ANTICIPATION NOTES SERIES A-1 4.00 06/30/00 56,093,602
</TABLE>
17
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$65,515,000 CALIFORNIA STATEWIDE COMMUNITY
DEVELOPMENT TAX REVENUE
ANTICIPATION NOTES SERIES C-2 4.00% 09/29/00 $ 65,646,779
21,530,000 CALIFORNIA STATEWIDE COMMUNITY
IDA 3.65 10/01/33 21,530,000
2,500,000 CALIFORNIA STATEWIDE COMMUNITY
IDA DEL MESA FARMS PROJECT
SERIES A 3.35 05/01/19 2,500,000
20,395,000 CALIFORNIA STATEWIDE COMMUNITY
MFHR 3.61 05/01/36 20,395,000
9,500,000 CALIFORNIA TRAN FINANCING
AUTHORITY 3.25 10/01/27 9,500,000
5,000,000 CAMARILLO CA MFHR HERITAGE
PARK 3.25 07/15/19 5,000,000
16,420,000 CAMARILLO CA REVENUE AMT 3.25 10/15/26 16,420,000
10,700,000 CHULA VISTA CA IDR SAN DIEGO
GAS & ELECTRIC 3.30 12/01/27 10,700,000
8,000,000 CITY OF CHULA VISTA GO 3.45 06/07/00 8,000,000
5,100,000 COLTON CA RDFA LAS PALOMAS
ASSOCIATES PROJECT LOC - BANK
OF AMERICA 3.25 11/01/15 5,100,000
500,000 COLTON CA RDFA MFHR LOC -
FEDERAL HOME LOAN BANK OF SAN
FRANCISCO 2.85 05/01/10 500,000
1,100,000 CONCORD CA MFHR BEL AIR
APARTMENTS LOC - BANK OF
AMERICA AMT 3.35 12/01/16 1,100,000
3,400,000 CONTRA COSTA COUNTY CA MFHR 3.15 11/15/22 3,400,000
745,000 CONTRA COSTA COUNTY CA MFHR EL
CERRITO ROYALE LOC - BANK OF
AMERICA 3.35 12/01/17 745,000
3,000,000 CONTRA COSTA COUNTY CA MFHR
LAKESHORE SERIES C 3.10 11/15/17 3,000,000
1,900,000 DUARTE CA RDFA COP JOHNSON
DUARTE PARTNERS PROJECT SERIES
B LOC - BANK OF AMERICA 3.20 12/01/14 1,900,000
2,200,000 DUBLIN CA MFHR PARK SIERRA
SERIES A 3.30 06/01/28 2,200,000
15,495,000 EBMUD CA SERIES 179 3.41 06/01/08 15,495,000
4,400,000 ESCONDIDO CA CDA LOC - BANK OF
AMERICA AMT 3.35 10/01/16 4,400,000
150,000 FAIRFIELD CA IDA HERMAN G
ROWLAND PROJECT LOC - BANK OF
AMERICA 3.00 04/01/05 150,000
900,000 FOWLER CA IDA BEE SWEET CITRUS
INCORPORATED LOC - BANK OF
AMERICA AMT 3.40 12/01/05 900,000
1,900,000 FREMONT CA COP FAMILY RESOURCE
CENTER FINANCING PROJECT 3.30 08/01/28 1,900,000
6,800,000 FULLERTON CA IDA SUNCLIPSE
INCORPORATED LOC - BANK OF
AMERICA 3.40 07/01/15 6,800,000
900,000 GOLDEN EMPIRE SCHOOLS
FINANCING AUTHORITY KERN HIGH
SCHOOL DISTRICT SERIES A 3.15 12/01/24 900,000
7,050,000 HAYWARD CA HOUSING AUTHORITY 3.15 06/15/25 7,050,000
3,605,000 HUNTINGTON BEACH CA MFHR
SEABRIDGE VILLAS LOC - BANK OF
AMERICA 4.00 02/01/10 3,605,000
2,500,000 IRVINE CA IDA IMPROVEMENT BOND
LOC - NATIONAL WESTMINSTER
BANK PLC 3.40 09/02/15 2,500,000
1,500,000 IRVINE CA IDA IRVINE EAST
INVESTMENT COMPANY LOC - BANK
OF AMERICA 3.25 12/01/05 1,500,000
3,405,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
REVENUE 3.20 11/01/10 3,405,000
10,200,000 IRVINE CA PUBLIC FACILITIES &
INFRASTRUCTURE AUTHORITY LEASE
REVENUE CAPITAL IMPROVEMENT
PROJECT 3.20 11/01/10 10,200,000
600,000 IRVINE RANCH CA WATER DISTRICT 3.40 09/01/06 600,000
1,700,000 IRVINE RANCH CA WATER DISTRICT
LOC - BANK OF AMERICA 3.60 05/01/09 1,700,000
11,000,000 IRVINE RANCH CA WATER DISTRICT
LOC - MORGAN GUARANTY TRUST 3.45 08/01/16 11,000,000
4,655,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES B 3.15 08/01/06 4,655,000
1,600,000 KERN COUNTY CA COP PUBLIC
FACILITIES PROJECT SERIES D 3.15 08/01/06 1,600,000
41,735,000 KERN COUNTY CA TAX REVENUE
ANTICIPATION NOTES 4.00 06/30/00 41,782,136
100,000 LANCASTER CA HFA MFHR WESTWOOD
PARK APARTMENTS LOC - BANK OF
AMERICA 3.25 12/01/07 100,000
6,950,000 LONG BEACH CA HEALTH
FACILITIES MEMORIAL HEALTH
SERVICES 3.25 10/01/16 6,950,000
2,700,000 LOS ANGELES CA CONVENTION &
EXHIBITION CENTER AUTHORITY
LEASE REVENUE 4.00 08/15/18 2,700,000
20,100,000 LOS ANGELES CA DW&P 3.20 02/01/10 20,100,000
15,360,000 LOS ANGELES CA DW&P SERIES 144 3.41 06/15/29 15,360,000
2,000,000 LOS ANGELES CA DW&P SERIES D 3.20 02/01/10 2,000,000
4,300,000 LOS ANGELES CA DW&P SERIES F 3.20 02/01/10 4,300,000
11,100,000 LOS ANGELES CA MFHR FOUNTAIN
PARK PROJECT 3.30 04/15/33 11,100,000
2,800,000 LOS ANGELES CA MFHR MASSELIN
MANOR LOC - BANK OF AMERICA 3.20 07/01/15 2,800,000
</TABLE>
18
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$ 3,000,000 LOS ANGELES CA MFHR RENTAL
ACADEMY APARTMENTS SERIES A 3.25% 10/01/19 $ 3,000,000
4,700,000 LOS ANGELES CA PENSION
OBLIGATION SERIES B AMBAC
INSURED 3.15 06/30/07 4,700,000
35,000,000 LOS ANGELES CA TAX REVENUE
ANTICIPATION NOTES 4.00 06/30/00 35,052,908
10,000,000 LOS ANGELES CA USD 4.00 06/30/00 10,002,521
9,630,000 LOS ANGELES CA USD 3.20 12/01/17 9,630,000
22,875,000 LOS ANGELES CA WASTE WATER 3.10 07/06/00 22,875,000
14,200,000 LOS ANGELES COUNTY CA COP
CORRECTIONAL FACILITIES
PROJECT MBIA INSURED 6.50 09/01/13 14,650,725
6,900,000 LOS ANGELES COUNTY CA HFA MFHR
SAND CANYON RANCH PROJECT LOC
-CITIBANK 3.10 11/01/06 6,900,000
5,490,000 LOS ANGELES COUNTY CA
METROPOLITAN TRANSPORTATION
AUTHORITY SALES TAX REVENUE
SERIES A 3.15 07/01/20 5,490,000
5,200,000 LOS ANGELES COUNTY CA
METROPOLITAN TRANSPORTATION
AUTHORITY SALES TAX REVENUE
SERIES 106 FSA INSURED 3.41 07/01/28 5,200,000
19,500,000 LOS ANGELES COUNTY CA PENSION
OBLIGATION SERIES A AMBAC
INSURED 3.15 06/30/07 19,500,000
10,000,000 LOS ANGELES COUNTY CA SCHOOL
FINANCING AUTHORITY COP SERIES
A 4.00 06/30/00 10,020,276
67,200,000 LOS ANGELES COUNTY CA TAX
REVENUE ANTICIPATION NOTES 4.00 06/30/00 67,303,879
1,750,000 LOS ANGELES COUNTY CA
TRANSPORTATION COMMISSION
SALES TAX REVENUE FGIC INSURED 3.15 07/01/12 1,750,000
4,000,000 LOS ANGELES COUNTY CAPITAL
ASSET 3.30 04/07/00 4,000,000
5,000,000 LOS ANGELES USD 3.50 07/01/19 5,000,000
4,750,000 METROPOLITAN WATER DISTRICT 3.36 07/01/27 4,750,000
9,995,000 METROPOLITAN WATER DISTRICT
COP SERIES 154 3.41 07/01/27 9,995,000
9,700,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES A 3.10 07/01/28 9,700,000
7,200,000 METROPOLITAN WATER DISTRICT
SOUTHERN CALIFORNIA SERIES
SG-128 3.36 07/01/30 7,200,000
5,200,000 MODESTO CA MFHR WESTDALE
COMMONS APARTMENTS LOC -
FEDERAL HOME LOAN BANK OF SAN
FRANCISCO 3.25 12/01/15 5,200,000
7,450,000 MODESTO-SAN JUAN-REDDING
PUBLIC POWER AGENCY SERIES
A22-REGULATION D 4.00 07/01/17 7,450,000
4,000,000 MODESTO-SAN JUAN-REDDING
PUBLIC POWER AGENCY SERIES F 3.50 07/01/22 4,000,000
2,900,000 MONTEBELLO CA LOC - BANK OF
AMERICA 3.40 04/01/15 2,900,000
3,500,000 MONTEREY COUNTY CA FINANCING
AUTHORITY REVENUE 3.20 09/01/36 3,500,000
9,200,000 NEWPORT BEACH CA HOAG MEMORIAL
PRESBYTERIAN HOSPITAL 3.50 10/01/22 9,200,000
9,300,000 NEWPORT BEACH CA HOAG MEMORIAL
PRESBYTERIAN HOSPITAL SERIES A 3.15 12/01/29 9,300,000
2,800,000 NEWPORT BEACH CA HOAG MEMORIAL
PRESBYTERIAN HOSPITAL SERIES B 3.50 10/01/26 2,800,000
40,505,000 NORTHERN CALIFORNIA PUBLIC
POWER REVENUE SERIES SSP 35A 3.40 07/01/28 40,505,000
1,200,000 OAK CA JOINT POWERS FINANCING
AUTHORITY LEASE REVENUE SERIES
A-1 3.30 08/01/21 1,200,000
9,000,000 ONTARIO CA MFHR PARK CENTRE
APARTMENTS LOC - BANK OF NEW
YORK 3.25 08/01/07 9,000,000
900,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE SERIES U 3.15 11/01/09 900,000
5,000,000 ORANGE COUNTY CA APARTMENT
DEVELOPMENT REVENUE VILLAS
ALIENTO 3.15 08/15/28 5,000,000
3,900,000 ORANGE COUNTY CA DEVELOPMENT
REVENUE PARK RIDGE VILLAS 3.15 11/15/28 3,900,000
7,249,000 ORANGE COUNTY CA HFA HARBOR
POINTE APARTMENT ISSUE D LOC -
CITIBANK 3.15 12/01/06 7,249,000
2,700,000 ORANGE COUNTY CA HFA NIGUEL
SUMMIT APARTMENT LOC - BANK OF
AMERICA 3.10 11/01/09 2,700,000
11,000,000 ORANGE COUNTY CA HFA SEASIDE
MEADOW APARTMENTS SERIES C LOC
-BANK OF AMERICA 3.20 08/01/08 11,000,000
9,900,000 ORANGE COUNTY CA HIDDEN HILLS
SERIES C 3.15 11/01/09 9,900,000
6,700,000 ORANGE COUNTY CA HOUSING
AUTHORITY OASIS MARTINIQUE
SERIES I 3.30 06/15/28 6,700,000
19,500,000 ORANGE COUNTY CA SANITATION
DISTRICT FGIC INSURED 3.45 08/01/17 19,500,000
3,400,000 PORT OAK CA REVENUE SERIES A-1
REGULATION D 4.10 11/01/22 3,400,000
2,245,000 RIVERSIDE COUNTY CA ASSET
LEASING CORPORATION COP SERIES
148 3.41 06/01/16 2,245,000
1,700,000 RIVERSIDE COUNTY CA COP SERIES
C 3.30 12/01/15 1,700,000
</TABLE>
19
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$10,110,000 SACRAMENTO CA FINANCING
AUTHORITY LEASE REVENUE 3.36% 11/01/20 $ 10,110,000
3,800,000 SACRAMENTO COUNTY CA
ADMINISTRATION CENTER &
COURTHOUSE PROJECT LOC - UNION
BANK OF SWITZERLAND 3.30 06/01/20 3,800,000
6,300,000 SACRAMENTO COUNTY CA MFHR
HIDDEN OAKS APARTMENTS 3.25 05/15/19 6,300,000
5,000,000 SACRAMENTO COUNTY CA MFHR
STONECREEK APARTMENTS 3.15 11/15/27 5,000,000
15,600,000 SACRAMENTO COUNTY CA OFFICE OF
EDUCATION TAX & REVENUE 4.50 01/19/01 15,683,559
5,000,000 SAN BERNARDINO CA ALTA LOMA
APARTMENTS LOC - FEDERAL HOME
LOAN BANK OF ATLANTA 3.00 02/01/23 5,000,000
15,000,000 SAN BERNARDINO COUNTY CA COP 3.36 08/01/28 15,000,000
1,600,000 SAN BERNARDINO COUNTY CA COP
HOUSING AUTHORITY REVENUE 3.20 07/01/15 1,600,000
10,800,000 SAN BERNARDINO COUNTY CA COP
MEDICAL CENTER FINANCING
PROJECT 3.15 08/01/26 10,800,000
6,115,000 SAN BERNARDINO COUNTY CA MFHR
GREEN VALLEY APARTMENTS 3.15 05/15/29 6,115,000
2,085,000 SAN BERNARDINO COUNTY CA MFHR
LOC - FEDERAL HOME LOAN BANK
OF SAN FRANCISCO 3.35 05/01/17 2,085,000
4,725,000 SAN BERNARDINO COUNTY CA MFHR
SERIES A LOC - FEDERAL HOME
LOAN BANK OF SAN FRANCISCO 3.35 05/01/17 4,725,000
13,000,000 SAN DIEGO CA COP TAX REVENUE
ANTICIPATION NOTES SERIES B 4.00 07/28/00 13,021,872
9,275,000 SAN DIEGO CA LOCAL AREA
GOVERNMENT COP SERIES C 4.50 09/29/00 9,319,738
1,900,000 SAN DIEGO CA MFHR CARMEL DEL
MAR 1993-E 3.15 12/01/15 1,900,000
3,500,000 SAN DIEGO CA MULTI FAMILY
APARTMENTS LOC - BANK OF
AMERICA 3.00 10/01/15 3,500,000
7,000,000 SAN DIEGO CA PORT AUTHORITY
REVENUE 3.50 07/07/00 7,000,000
15,000,000 SAN DIEGO CA PUBLIC FACILITIES
FINANCING AUTHORITY REVENUE
SERIES SG 130 3.66 05/15/29 15,000,000
9,700,000 SAN DIEGO COUNTY CA MFHR 3.20 04/15/05 9,700,000
30,000,000 SAN FRANCISCO BAY GO 2.75 04/06/00 30,000,000
14,000,000 SAN FRANCISCO BAY GO 3.10 05/04/00 14,000,000
10,245,000 SAN FRANCISCO CA CITY & COUNTY
AIRPORT 3.35 05/09/00 10,245,000
4,175,000 SAN FRANCISCO CA CITY & COUNTY
FINANCE AUTHORITY REVENUE 3.30 09/01/06 4,175,000
11,410,000 SAN FRANCISCO CA CITY & COUNTY
INTERNATIONAL AIRPORT REVENUE 3.43 01/01/27 11,410,000
5,750,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC - BANK
OF NOVA SCOTIA 3.20 12/01/17 5,750,000
2,200,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC -
CITIBANK 3.15 12/01/17 2,200,000
3,000,000 SAN FRANCISCO CA MFHR FILMORE
CENTER APARTMENTS LOC -
CITIBANK 3.20 12/01/17 3,000,000
31,950,000 SAN FRANCISCO COUNTY CA
INTERNATIONAL AIRPORT COP
SERIES 31 FGIC INSURED 3.41 05/01/29 31,950,000
3,055,000 SAN JACINTO CA USD SERIES A 3.25 09/01/14 3,055,000
5,000,000 SAN JOSE CA MFHR 3.61 05/01/30 5,000,000
5,000,000 SAN JOSE CA MFHR 3.61 05/01/30 5,000,000
2,200,000 SAN JOSE CA MFHR FAIRWAY GLEN
SERIES A 3.20 11/01/07 2,200,000
1,000,000 SAN JOSE CA MULTIFAMILY
HOUSING REVENUE AMT 3.35 03/01/32 1,000,000
6,000,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT A 3.30 07/01/26 6,000,000
6,800,000 SAN JOSE CA REDEVELOPMENT
AGENCY PROJECT B 3.00 07/01/26 6,800,000
7,300,000 SAN JOSE/SANTA CLARA CLEAN
WATER FINANCING AUTHORITY 3.15 11/15/11 7,300,000
2,000,000 SAN JUAN CA PUBLIC POWER
AGENCY REVENUE SERIES B 3.20 07/01/18 2,000,000
2,200,000 SAN LEANDRO CA MFHR HAAS
AVENUE APARTMENTS LOC - BANK
OF AMERICA 3.25 10/01/07 2,200,000
14,645,000 SAN MATEO COUNTY CA JT POWERS
AUTHORITY LEASE REVENUE SERIES
123 FSA INSURED 3.41 07/15/29 14,645,000
13,885,000 SANTA CLARA CA ELECTRIC
REVENUE SERIES 85B LOC -
NATIONAL WESTMINSTER BANK PLC 3.30 07/01/10 13,885,000
3,490,000 SANTA CLARA CA REDEVELOPMENT
AGENCY TAX ALLOCATION SERIES
164 3.41 06/01/23 3,490,000
1,000,000 SANTA CLARA CA TRANSIT SYSTEM
LOC - SUMITOMO BANK LIMITED 3.25 06/01/15 1,000,000
7,300,000 SANTA CLARA COUNTY CA HOSPITAL
DISTRICT FACILITY REVENUE
SERIES A 3.30 08/01/15 7,300,000
4,600,000 SANTA CLARA COUNTY CA MFHR
FOXCHASE APARTMENTS SERIES E
FGIC INSURED 3.15 11/01/07 4,600,000
</TABLE>
20
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
CALIFORNIA MUNICIPAL SECURITIES (continued)
$12,000,000 SANTA CRUZ COUNTY CA TAX &
REVENUE 4.50% 10/06/00 $ 12,059,244
4,475,000 SIMI VALLEY CA MFHR CREEKSIDE
VILLAGE APARTMENTS LOC - BANK
OF AMERICA 3.15 07/01/23 4,475,000
3,000,000 SIMI VALLEY CA MFHR LINCOLN
WOOD RANCH LOC - SUMITOMO BANK 3.30 06/01/10 3,000,000
5,800,000 SOUTHEAST RESOURCE RECOVERY
FACILITY LEASE REVENUE SERIES
B AMT 3.25 12/01/18 5,800,000
4,200,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY REVENUE
PALOVERDE PROJECT AMBAC
INSURED 3.15 07/01/17 4,200,000
3,990,000 SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY REVENUE
SPECIAL OBLIGATION SERIES B 5.40 07/01/00 4,010,079
10,000,000 SOUTHERN CALIFORNIA STATE
PUBLIC POWER AUTHORITY PALO
VERDE PROJECT SERIES B AMBAC
INSURED 3.15 07/01/09 10,000,000
1,000,000 SOUTHERN CALIFORNIA STATE
PUBLIC POWER AUTHORITY
SOUTHERN TRANSMISSION PROJECT
LOC - SWISS BANK 3.15 07/01/19 1,000,000
8,000,000 STANISLAUS CA WASTE TO ENERGY
FINANCE AGENCY SOLID WASTE
FACILITY OGDEN MARTIN SYSTEM
PROJECT 3.25 01/01/10 8,000,000
6,300,000 TRACY CA MFHR SYCAMORE VILLAGE
APARTMENTS LOC - BANK OF
AMERICA 2.95 05/01/15 6,300,000
900,000 TURLOCK CA COP IRRIGATION
PROJECT SERIES A 3.20 01/01/26 900,000
4,320,000 TURLOCK CA IRRIGATION DISTRICT
REVENUE SERIES A LOC -
CANADIAN IMPERIAL BANK OF
COMMERCE 3.20 01/01/14 4,320,000
800,000 UNIVERSITY OF CALIFORNIA COP
SERIES 159 3.41 09/01/28 800,000
25,000,000 UNIVERSITY OF CALIFORNIA
REVENUE 3.20 07/06/00 25,000,000
2,700,000 VALLECITOS CA WATER DISTRICT
COP TWIN OAKS RESERVOIR
PROJECT 3.15 07/01/30 2,700,000
4,800,000 VALLEJO CA MFHR HIGHLANDS 3.20 06/01/07 4,800,000
7,300,000 VALLEJO CA MFHR REVENUE SERIES
C 3.25 01/01/08 7,300,000
2,900,000 WALNUT CREEK CA MFHR CREEKSIDE
DRIVE APARTMENTS LOC - BANK OF
AMERICA 2.95 04/01/07 2,900,000
11,900,000 WEST COVINA CA RDA COP
BARRANCA LOC - CITIBANK 3.20 09/01/05 11,900,000
1,500,000 WEST COVINA CA REDEVELOPMENT
AGENCY LEASE REVENUE 3.10 08/01/18 1,500,000
TOTAL CALIFORNIA MUNICIPAL SECURITIES (COST
$2,274,083,337) 2,198,748,337
--------------
PUERTO RICO MUNICIPAL SECURITIES - 12.84%
55,000,000 PUERTO RICO COMMONWEALTH TAX &
REVENUE 4.50 07/30/00 55,131,098
4,850,000 PUERTO RICO COMMONWEALTH 3.36 07/01/09 4,850,000
9,720,000 PUERTO RICO COMMONWEALTH COP
SERIES 125 3.41 07/01/27 9,720,000
30,800,000 PUERTO RICO COMMONWEALTH
GOVERNMENT DEVELOPMENT 3.15 12/01/15 30,800,000
6,090,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE 3.36 07/01/15 6,090,000
3,210,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE 3.36 07/01/26 3,210,000
9,700,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY REVENUE PA-331 3.36 07/01/14 9,700,000
5,000,000 PUERTO RICO COMMONWEALTH
HIGHWAY & TRANSPORTATION
AUTHORITY SERIES A AMBAC
INSURED 3.25 07/01/28 5,000,000
12,000,000 PUERTO RICO COMMONWEALTH
INFRASTRUCTURE FINANCING
AUTHORITY SERIES 139 3.41 07/01/28 12,000,000
30,965,000 PUERTO RICO COMMONWEALTH
SERIES 120 MBIA INSURED 3.41 07/01/23 30,965,000
50,500,000 PUERTO RICO COMMONWEALTH
SERIES A-1 3.85 07/30/00 50,500,000
9,500,000 PUERTO RICO ELECTRIC POWER
AUTHORITY REVENUE 3.36 07/01/07 9,500,000
4,850,000 PUERTO RICO ELECTRIC POWER
AUTHORITY REVENUE 3.36 07/01/12 4,850,000
8,535,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.00 05/04/00 8,535,000
5,200,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.00 05/22/00 5,200,000
11,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.10 05/15/00 11,000,000
14,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.45 04/28/00 14,000,000
16,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.50 04/26/00 16,000,000
14,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.60 08/29/00 14,000,000
6,600,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.65 10/18/00 6,600,000
</TABLE>
21
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
PUERTO RICO MUNICIPAL SECURITIES (continued)
$ 8,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.50% 04/05/00 $ 8,000,000
4,000,000 PUERTO RICO GOVERNMENT
DEVELOPMENT BANK 3.70 08/09/00 4,000,000
3,820,000 PUERTO RICO PUBLIC BUILDINGS
AUTHORITY REVENUE 3.36 07/01/27 3,820,000
2,715,000 PUERTO RICO PUBLIC FINANCING
CORPORATION 3.36 06/01/19 2,715,000
TOTAL PUERTO RICO MUNICIPAL SECURITIES
(COST $250,851,098) 326,186,098
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $2,524,934,435)* 99.38% $2,524,934,435
OTHER ASSETS AND LIABILITIES, NET 0.62 15,652,973
------- --------------
TOTAL NET ASSETS 100.00% $2,540,587,408
------- --------------
------- --------------
</TABLE>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES - 6.11%
$ 85,000,000 LIBERTY LIGHTHOUSE US CAPITAL 6.04% 08/11/00 $ 84,999,992
79,750,000 MOAT FUNDING LLC 6.04 05/02/00 79,750,000
54,500,000 SIGMA FINANCE INCORPORATED 6.09 10/05/00 54,500,000
22,772,219 STEERS 1998, SERIES A39 6.18 04/25/00 22,772,219
33,500,000 SYNDICATED LOAN FUNDING TRUST
SERIES 1999-3 6.14 06/15/00 33,500,000
60,000,000 SYNDICATED LOAN FUNDING TRUST
SERIES 1999-7 6.22 10/16/00 60,000,000
200,000,000 SYNDICATED LOAN FUNDING TRUST
SERIES 2000-6 6.29 3/15/01 200,000,000
148,271,489 WFP TOWER B FINANCE
CORPORATION SHORT-TERM STEERS
TRUST 6.12 07/07/00 148,271,489
TOTAL ASSET BACKED SECURITIES (COST
$683,793,700) 683,793,700
---------------
CERTIFICATES OF DEPOSIT - 3.96%
200,000,000 NATEXIS BANQUE SA NEW YORK
BRANCH 6.58 1/22/01 199,923,556
100,000,000 NATEXIS BANQUE SA NEW YORK
BRANCH 6.75 2/1/01 99,960,508
43,300,000 NATIONAL WEST SECURITIES 5.14 04/14/00 43,299,374
100,000,000 UNION BANK OF SWITZERLAND
STAMFORD BRANCH 6.24 12/06/00 99,954,866
TOTAL CERTIFICATES OF DEPOSIT (COST
$443,138,304) 443,138,304
---------------
COMMERCIAL PAPER - 64.83%
22,000,000 ACE OVERSEAS CORPORATION 5.90{::} 04/10/00 21,974,761
30,000,000 ACE OVERSEAS CORPORATION 5.90{::} 04/14/00 29,945,917
121,500,000 AEGON FUNDING 5.88{::} 05/17/00 120,626,820
50,000,000 AMSTERDAM FUNDING CORPORATION 6.10{::} 06/21/00 49,330,695
74,000,000 APRECO INCORPORATED 5.90{::} 04/19/00 73,805,956
50,000,000 APRECO INCORPORATED 6.10{::} 06/09/00 49,432,361
46,000,000 APRECO INCORPORATED 6.15{::} 06/20/00 45,387,050
50,000,000 AQUINAS FUNDING LLC 6.35{::} 04/03/00 50,000,000
100,000,000 ASPEN FUNDING CORPORATION 5.96{::} 07/18/00 98,245,112
340,000,000 ASPEN FUNDING CORPORATION 5.93{::} 05/22/00 337,255,728
43,500,000 ASSET BACKED CAPITAL FINANCE 5.90{::} 05/22/00 43,150,671
104,595,000 ATLANTIS ONE-FUNDING
CORPORATION 5.90{::} 05/08/00 103,995,032
200,000,000 BAUS FUNDING LLC 5.96{::} 06/07/00 197,847,778
38,000,000 BAVARIA GLB CORPORATION 5.91{::} 04/18/00 37,906,425
108,500,000 BAVARIA TRR CORPORATION 5.98{::} 07/26/00 106,445,372
500,000 BEETHOVEN FUNDING CORPORATION 6.04{::} 04/13/00 497,225
69,513,000 BEETHOVEN FUNDING CORPORATION 6.01{::} 04/07/00 69,466,581
53,500,000 BEETHOVEN FUNDING CORPORATION 6.00{::} 04/13/00 53,410,833
15,000,000 BEETHOVEN FUNDING CORPORATION 6.10{::} 04/25/00 14,944,083
26,000,000 BETA FINANCE INCORPORATED 6.15{::} 09/15/00 26,000,000
97,000,000 BILLS SECURITIZATION LIMITED 5.93{::} 05/10/00 96,408,812
50,000,000 BILLS SECURITIZATION LIMITED 5.96{::} 07/18/00 49,122,556
42,500,000 CC USA INCORPORATED 6.12{::} 09/12/00 41,329,550
201,000,000 CC USA INCORPORATED 6.12{::} 09/15/00 195,361,950
34,750,000 CC USA INCORPORATED 6.17{::} 10/16/00 34,750,000
22,000,000 CHRISTIANIA BANK 6.20{::} 11/01/00 21,196,757
25,000,000 CHRISTIANIA BANK 6.22{::} 11/01/00 24,084,279
3,000,000 COMPASS SECURITIZATION 5.92{::} 04/10/00 2,996,550
25,000,000 COMPASS SECURITIZATION 5.93{::} 04/17/00 24,942,347
</TABLE>
23
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$ 22,000,000 COMPASS SECURITIZATION 5.91{::}% 04/17/00 $ 21,949,437
100,750,000 CONDUIT ASSET BACKED
SECURITIES LIMITED 5.90{::} 04/17/00 100,518,835
29,425,000 CONDUIT ASSET BACKED
SECURITIES LIMITED 6.10{::} 04/25/00 29,315,310
40,750,000 CONDUIT ASSET BACKED
SECURITIES LIMITED 6.00{::} 06/19/00 40,227,042
50,400,000 CONDUIT ASSET BACKED
SECURITIES LIMITED 6.14{::} 06/21/00 49,720,916
43,860,000 CONDUIT ASSET BACKED
SECURITIES LIMITED 6.14{::} 06/22/00 43,261,555
33,900,000 COOPERATIVE ASSOCIATION OF
TRACTOR DEALERS 6.13{::} 05/19/00 33,634,469
97,625,000 CPI FUNDING CORPORATION 6.16{::} 07/25/00 95,737,367
68,671,000 CPI FUNDING CORPORATION 6.14{::} 08/25/00 66,984,440
115,119,000 CPI FUNDING CORPORATION 5.95{::} 04/25/00 114,700,415
150,000,000 CREGEM NORTH AMERICA 5.97{::} 07/06/00 147,661,750
40,955,000 FALCON ASSET SERCURITIZATION
CORPORATION 5.90{::} 04/19/00 40,847,607
65,000,000 GENERAL ELECTRIC CAPITAL
CORPORATION 5.83{::} 04/10/00 64,926,316
111,615,000 GIRO FUNDING CORPORATION 6.00{::} 05/10/00 110,926,708
500,000 GRAND FUNDING CORPORATION 6.05{::} 06/19/00 493,520
43,000,000 GRAND FUNDING CORPORATION 6.05{::} 06/19/00 42,443,569
22,000,000 GREYHAWK CAPITAL CORPORATION 5.97{::} 06/19/00 21,719,079
200,000,000 GREYHAWK CAPITAL CORPORATION 5.95{::} 05/08/00 198,843,056
200,000,000 GREYHAWK CAPITAL CORPORATION 5.92{::} 06/16/00 197,566,223
50,000,000 GREYHAWK FUNDING 5.95{::} 06/05/00 49,479,376
26,750,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.07{::} 06/20/00 26,398,193
50,000,000 INTERNATIONAL SECURITIZATION
CORPORATION 5.91{::} 04/03/00 50,000,000
19,587,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.00{::} 04/17/00 19,541,297
102,858,000 INTERNATIONAL SECURITIZATION
CORPORATION 6.01{::} 04/17/00 102,617,598
55,500,000 INTERNATIONAL SECURITIZATION
CORPORATION 5.95{::} 04/28/00 55,270,678
50,000,000 IRISH PERMANENT TREASURY 5.99{::} 07/27/00 49,043,264
44,000,000 IRISH PERMANENT TREASURY 5.99{::} 07/28/00 43,150,751
50,000,000 IRISH PERMANENT TREASURY 5.99{::} 07/26/00 49,051,584
2,000,000 IRISH PERMANENT TREASURY 6.07{::} 07/25/00 1,961,926
45,000,000 IRISH PERMANENT TREASURY 5.99{::} 07/25/00 44,153,913
33,500,000 K2 USA LLC 5.91{::} 05/30/00 33,186,523
54,000,000 K2 USA LLC 6.12{::} 09/11/00 52,522,020
167,734,000 KBC COMMERCIAL PAPER TRUST 5.94{::} 05/04/00 166,876,041
225,000,000 KBC COMMERCIAL PAPER TRUST 6.10{::} 05/19/00 223,246,250
57,615,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 5.88{::} 04/19/00 57,464,433
100,000,000 LEXINGTON PARKER CAPITAL
COMPANY LLC 5.97{::} 06/05/00 98,955,250
25,000,000 LINKS FINANCE 6.13{::} 07/10/00 24,582,820
39,000,000 MOAT FUNDING LLC 5.99{::} 05/09/00 38,776,530
22,250,000 MOAT FUNDING LLC 5.73{::} 05/09/00 22,122,508
100,000,000 MOAT FUNDING LLC 5.98{::} 07/20/00 98,206,000
200,000,000 MORGAN STANLEY DEAN WITTER &
COMPANY 5.90{::} 04/13/00 199,672,221
40,000,000 MORIARTY LIMITED 5.90{::} 04/18/00 39,901,667
83,500,000 MORIARTY LIMITED 5.90{::} 04/20/00 83,267,360
75,960,000 MORIARTY LIMITED 6.19{::} 09/20/00 73,739,647
150,000,000 MORIARTY LIMITED 6.21{::} 11/02/00 144,488,625
100,000,000 NATEXIS US FINANCE CORPORATION 5.95{::} 07/11/00 98,363,751
200,000,000 NEWPORT FUNDING LLC 5.88{::} 04/28/00 199,183,334
</TABLE>
24
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (continued)
$170,000,000 NEWPORT FUNDING LLC 5.96{::}% 07/18/00 $ 167,016,689
5,000,000 NEWPORT FUNDING LLC 6.06{::} 07/18/00 4,910,821
36,794,000 POOLED ACCOUNTS RECEIVABLES
CAPITAL CORPORATION 6.04{::} 07/05/00 36,219,891
57,070,000 REPEAT OFFERING SECURITIZATION
ENTITY 5.87{::} 04/18/00 56,930,416
56,765,000 REPEAT OFFERING SECURITIZATION
ENTITY 5.87{::} 04/20/00 56,607,651
75,000,000 SIGMA FINANCE CORPORATION 5.97{::} 07/17/00 73,694,064
31,300,000 SINOCHEM AMERICA INCORPORATED
ABN-AMRO BANK LOC 5.90{::} 05/05/00 31,135,849
77,700,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 5.85{::} 04/04/00 77,687,374
65,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 6.08{::} 04/26/00 64,747,511
100,000,000 SPECIAL PURPOSE ACCOUNTS
RECEIVABLES COOPERATIVE
CORPORATION 6.00{::} 06/01/00 99,016,667
150,000,000 SPINTAB AB 6.00{::} 07/12/00 147,500,000
17,000,000 SPINTAB AB 6.00{::} 07/13/00 16,713,834
150,000,000 SWEDBANK INCORPORATED 5.97{::} 07/24/00 147,214,000
61,262,000 SYDNEY CAPITAL CORPORATION 6.00{::} 05/12/00 60,863,797
45,534,000 SYDNEY CAPITAL CORPORATION 6.00{::} 05/02/00 45,313,919
29,435,000 SYDNEY CAPITAL CORPORATION 5.90{::} 04/17/00 29,367,463
19,500,000 SYDNEY CAPITAL CORPORATION 5.97{::} 04/18/00 19,451,495
57,048,000 SYDNEY CAPITAL CORPORATION 5.90{::} 04/19/00 56,898,408
25,653,000 SYDNEY CAPITAL CORPORATION 6.14{::} 06/19/00 25,316,105
30,835,000 THAMES ASSET GLOBAL
SECURITIZATION INCORPORATED 6.15{::} 06/30/00 30,371,448
230,600,000 TRIDENT CAPITAL FINANCE 5.85{::} 04/05/00 230,525,055
97,000,000 TRIDENT CAPITAL FINANCE 5.91{::} 05/10/00 96,410,806
100,000,000 WCP FUNDING INCORPORATED 6.00{::} 04/12/00 99,850,000
TOTAL COMMERCIAL PAPER (COST $7,260,325,638) 7,260,325,638
---------------
MASTER NOTES - 0.16%
17,438,788 GENERAL ELECTRIC COMPANY 6.00 04/06/00 17,438,788
---------------
17,438,788
TOTAL MASTER NOTES (COST $17,438,788)
---------------
MUNICIPAL DEMAND NOTES - 0.16%
7,100,000 DURHAM, NC, COP, SERIES B 6.15 07/01/03 7,100,000
810,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 810,000
2,105,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 2,105,000
820,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 820,000
750,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 750,000
1,565,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 1,565,000
1,255,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 1,255,000
1,760,000 KALAMAZOO FUNDING CORPORATION
OLD KENT BANK LOC 6.20 12/15/26 1,760,000
1,500,000 PRINCE WILLIAM COUNTY VA
TAXABLE NOTES SERIES A
WACHOVIA BANK OF NORTH
CAROLINA LOC 6.15 03/01/17 1,500,000
TOTAL MUNICIPAL DEMAND NOTES (COST
$17,665,000) 17,665,000
---------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE NOTES - 7.67%
10,750,000 ABBEY NATIONAL TREASURY
SERVICES 5.13 05/04/00 10,749,384
26,000,000 ABBEY NATIONAL TREASURY
SERVICES 5.65 07/24/00 25,996,178
102,500,000 BETA FINANCE INCORPORATED 6.75 2/15/01 102,500,000
225,000,000 BETA FINANCE INCORPORATED 6.64 1/25/01 225,000,000
50,500,000 CC USA INCORPORATED 5.61 06/07/00 50,500,000
</TABLE>
25
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
SHORT-TERM FEDERAL AGENCIES (continued)
$ 50,000,000 DORADA FINANCE INCORPORATED 5.82% 7/30/00 $ 50,000,000
150,000,000 DORADA FINANCE INCORPORATED 6.56 1/16/01 149,988,761
17,250,000 GOLDMAN SACHS GROUP
INCORPORATED 6.00 08/07/00 17,250,000
10,500,000 GOLDMAN SACHS GROUP
INCORPORATED 6.07 09/01/00 10,500,000
21,750,000 GOLDMAN SACHS GROUP
INCORPORATED 6.10 09/25/00 21,750,000
43,250,000 IBM CREDIT CORPORATION 5.27 04/07/00 43,249,668
21,750,000 SIGMA FINANCE INCORPORATED 5.44 05/24/00 21,750,000
100,000,000 SYNDICATED LOAN FUNDING TRUST
SERIES 1999-8 6.45 10/16/00 100,000,000
30,250,000 TEXACO CAPITAL 5.11 05/03/00 30,248,321
TOTAL SHORT-TERM FEDERAL AGENCIES -- FIXED
RATE NOTES (COST $859,482,312) 859,482,312
---------------
TIME DEPOSITS - 3.43%
239,636,577 NATEXIS BANQUE 6.44 04/03/00 239,636,577
145,000,000 BARCLAYS BANK 6.34 04/03/00 145,000,000
TOTAL TIME DEPOSITS (COST $384,636,577) 384,636,577
---------------
VARIABLE & FLOATING RATE CERTIFICATES OF DEPOSIT - 1.03%
26,000,000 SOUTH TRUST BANK 6.16 09/29/00 25,989,761
90,000,000 SOUTH TRUST BANK 6.16 09/29/00 89,964,558
TOTAL VARIABLE & FLOATING RATE CERTIFICATES
OF DEPOSIT (COST $115,954,319) 115,954,319
---------------
VARIABLE & FLOATING RATE FUNDING AGREEMENTS - 3.36%
22,250,000 ALLSTATE LIFE INSURANCE
COMPANY 6.10 06/29/00 22,250,000
20,000,000 ALLSTATE LIFE INSURANCE
COMPANY 6.10 6/29/00 20,000,000
22,250,000 GE LIFE & ANNUITY 5.91 07/01/00 22,250,000
22,250,000 GE LIFE & ANNUITY 5.91 07/01/00 22,250,000
20,000,000 GE LIFE & ANNUITY 5.91 07/01/00 20,000,000
20,000,000 GE LIFE & ANNUITY 5.91 07/01/00 20,000,000
250,000,000 TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY 6.15 02/09/01 250,000,000
TOTAL FLOATING RATE FUNDING AGREEMENTS (COST
$376,750,000) 376,750,000
---------------
VARIABLE & FLOATING RATE NOTES - AGENCY - 0.39%
43,300,000 COMERICA BANK DETROIT 6.17 09/25/00 43,285,751
---------------
TOTAL VARIABLE & FLOATING RATE NOTES --
AGENCY (COST $43,285,751) 43,285,751
---------------
VARIABLE & FLOATING RATE NOTES - CORPORATE - 5.42%
21,250,000 BEAR STEARNS & COMPANY
INCORPORATED 6.11 09/15/00 21,247,467
42,500,000 BEAR STEARNS & COMPANY
INCORPORATED 6.15 11/15/00 42,500,000
85,000,000 BEAR STEARNS & COMPANY
INCORPORATED 5.96 03/01/01 85,000,000
86,000,000 BEAR STEARNS & COMPANY
INCORPORATED 6.07 07/10/00 86,010,008
42,250,000 BEAR STEARNS & COMPANY
INCORPORATED 6.12 06/16/00 42,252,483
110,750,000 FIRST UNION NATIONAL BANK 6.16 08/25/00 110,750,000
25,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.16 07/14/00 25,002,578
26,000,000 GOLDMAN SACHS GROUP
INCORPORATED 6.09 09/15/00 25,998,829
59,750,000 MORGAN STANLEY GROUP
INCORPORATED 6.25 08/15/00 59,750,000
108,250,000 NATIONAL CITY BANK 6.15 09/29/00 108,208,346
TOTAL VARIABLE & FLOATING RATE NOTES --
CORPORATE (COST $606,719,711) 606,719,711
---------------
</TABLE>
26
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
CASH INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENTS - 3.30%
$ 25,000,000 DEUTSCHE BANK REPURCHASE
AGREEMENT 6.50% 04/06/00 $ 25,000,000
150,000,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.35 04/03/00 150,000,000
195,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.50 04/06/00 195,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$370,000,000) 370,000,000
---------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $11,179,190,100)* 99.82% $11,179,190,100
OTHER ASSETS AND LIABILITIES, NET 0.18 19,874,663
------- ---------------
TOTAL NET ASSETS 100.00% $11,199,064,762
------- ---------------
------- ---------------
</TABLE>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A DEMAND
FEATURE WHICH REDUCES THE REMAINING MATURITY.
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
27
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
COMMERCIAL PAPER - 1.88%
$ 65,804,000 USA GROUP 5.97%{::} 04/20/00 $ 65,618,488
--------------
TOTAL COMMERCIAL PAPER (COST $65,618,488) 65,618,488
--------------
SHORT-TERM FEDERAL AGENCIES - DISCOUNT NOTES - 43.94%
FEDERAL HOME LOAN BANK - 7.97%
31,329,000 FEDERAL HOME LOAN BANK 6.15{::} 07/25/00 30,752,965
30,000,000 FEDERAL HOME LOAN BANK 5.87{::} 09/15/00 29,238,954
50,000,000 FEDERAL HOME LOAN BANK 5.76{::} 05/17/00 49,656,861
47,400,000 FEDERAL HOME LOAN BANK 5.75{::} 05/17/00 47,075,573
50,000,000 FEDERAL HOME LOAN BANK 5.75{::} 05/10/00 49,711,709
47,725,000 FEDERAL HOME LOAN BANK 5.74{::} 05/05/00 47,487,012
25,000,000 FEDERAL HOME LOAN BANK 5.93{::} 09/15/00 24,359,654
278,282,728
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 22.87%
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.79{::} 05/11/00 49,695,736
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.85{::} 04/04/00 74,988,073
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.98{::} 06/08/00 49,460,084
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.13{::} 08/17/00 48,876,112
25,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.44{::} 01/16/01 23,789,274
1,500,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.76{::} 08/10/00 1,470,761
400,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.87{::} 08/04/00 392,418
700,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.83{::} 08/01/00 687,145
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.13{::} 06/29/00 73,906,157
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.06{::} 06/22/00 49,337,222
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.97{::} 06/08/00 49,461,000
18,637,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.89{::} 05/11/00 18,522,310
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.92{::} 05/04/00 49,748,771
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.98{::} 05/02/00 74,648,073
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.79{::} 04/27/00 49,809,667
57,607,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.77{::} 04/13/00 57,515,949
77,021,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.73{::} 04/04/00 77,008,891
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.95{::} 06/01/00 49,519,396
798,837,039
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 13.10%
59,868,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.89{::} 05/25/00 59,381,140
44,242,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.76{::} 06/01/00 43,835,957
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.80{::} 04/13/00 49,920,625
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.86{::} 05/04/00 49,751,139
41,391,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.74{::} 05/05/00 41,184,597
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.76{::} 05/05/00 49,750,222
25,650,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.80{::} 05/19/00 25,465,925
32,952,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.02{::} 07/07/00 32,441,565
40,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.08{::} 08/03/00 39,200,223
26,694,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.23{::} 08/03/00 26,142,176
</TABLE>
28
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (continued)
$ 40,778,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.77%{::} 05/25/00 $ 40,446,974
457,520,543
--------------
TOTAL SHORT-TERM FEDERAL AGENCIES - DISCOUNT
NOTES (COST $1,534,640,310) 1,534,640,310
--------------
SHORT-TERM FEDERAL AGENCIES - FIXED RATE NOTES - 9.86%
FEDERAL HOME LOAN BANK - 5.21%
1,000,000 FEDERAL HOME LOAN BANK 5.15 05/19/00 999,914
50,000,000 FEDERAL HOME LOAN BANK 6.05 11/03/00 49,981,174
30,000,000 FEDERAL HOME LOAN BANK 6.67 04/06/01 29,999,700
40,000,000 FEDERAL HOME LOAN BANK 6.35 02/01/01 39,977,308
1,000,000 FEDERAL HOME LOAN BANK 5.26 05/26/00 999,959
20,000,000 FEDERAL HOME LOAN BANK 5.01 04/28/00 19,999,221
40,000,000 FEDERAL HOME LOAN BANK 6.75 03/01/01 39,997,158
181,954,434
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 1.00%
35,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 6.50 01/19/01 34,991,304
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 2.65%
29,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.55 03/20/01 28,986,823
25,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.04 04/06/00 24,999,872
16,500,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 9.05 04/10/00 16,511,127
22,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 4.98 04/20/00 21,999,666
92,497,488
--------------
STUDENT LOAN MORTGAGE ASSOCIATION - 1.00%
35,000,000 STUDENT LOAN MORTGAGE
ASSOCIATION 5.90 12/01/00 34,971,536
--------------
TOTAL SHORT-TERM FEDERAL AGENCIES - FIXED
RATE NOTES (COST $344,414,762) 344,414,762
--------------
VARIABLE AND FLOATING RATE NOTES - AGENCY - 15.74%
FEDERAL HOME LOAN BANK - 1.43%
50,000,000 FEDERAL HOME LOAN BANK 5.84 05/12/00 49,995,475
--------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 5.72%
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.82 01/10/01 74,945,103
50,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.94 12/20/00 49,955,431
75,000,000 FEDERAL HOME LOAN MORTGAGE
CORPORATION 5.88 05/18/00 74,992,625
199,893,159
--------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 8.59%
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.17 07/17/00 49,992,847
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.88 11/13/00 49,974,061
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.74 08/02/00 49,985,397
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.84 07/14/00 49,990,943
50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 5.89 05/10/00 49,996,968
</TABLE>
29
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (continued)
$ 50,000,000 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 6.24% 09/18/00 $ 49,995,423
299,935,639
--------------
TOTAL VARIABLE AND FLOATING RATE NOTES -
AGENCY (COST $549,824,273) 549,824,273
--------------
REPURCHASE AGREEMENTS - 29.57%
50,000,000 BEAR STEARNS REPURCHASE
AGREEMENT 5.82 04/06/00 50,000,000
368,641,152 CREDIT SUISSE FIRST BOSTON
REPURCHASE AGREEMENT 6.22 04/03/00 368,641,152
2,102,038 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.05 04/03/00 2,102,038
62,342,874 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.20 04/03/00 62,342,874
550,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.50 04/06/00 550,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$1,033,086,064) 1,033,086,064
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $3,527,583,897)* 100.99% $3,527,583,897
OTHER ASSETS AND LIABILITIES, NET (0.99) (34,668,192)
------- --------------
TOTAL NET ASSETS 100.00% $3,492,915,705
------- --------------
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
30
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MUNICIPAL SECURITIES - 97.76%
ALABAMA - 1.28%
$ 4,000,000 ALABAMA SPECIAL CARE
FACILITIES FINANCING AUTHORITY
RV ASCENSION HEALTH CREDIT
PROJECT SERIES B SALOMON SMITH
BARNEY LOC 3.85% 11/15/39 $ 4,000,000
4,295,000 JEFFERSON COUNTY AL SEWER RV
PA 487 R 3.96 02/01/38 4,295,000
6,400,000 STEVENSON AL INDUSTRIAL
DEVELOPMENT BOARD
ENVIRONMENTAL IMPROVEMENT RV
THE MEAD CORPORATION PROJECT
SERIES B 4.15 04/01/33 6,400,000
14,695,000
--------------
ALASKA - 1.14%
13,100,000 VALDEZ AK MARINE TERMINAL RV
EXXON PIPELINE COMPANY PROJECT
SERIES A 3.80 12/01/33 13,100,000
--------------
ARIZONA - 0.64%
4,800,000 COCHISE COUNTY AZ UNIVERSITY
SCHOOL DISTRICT NO. 68 SIERRA
VISTA SERIES B FGIC INSURED
P/R 7/1/01 @ 101 7.63 07/01/10 4,893,447
2,450,000 SEDONA AZ SEWER REVENUE
SERIES A 7.50 07/01/20 2,519,437
7,412,884
--------------
ARKANSAS - 0.09%
1,000,000 LITTLE ROCK AR IDR GUARANTEED
BY CPC INTERNATIONAL 5.76 12/01/03 1,000,000
--------------
CALIFORNIA - 1.60%
18,300,000 CALIFORNIA HIGHER EDUCATIONAL
LOAN AUTHORITY STUDENT LOAN RV
SER E-1 STUDENT LOAN MARKETING
LOC 3.95 12/01/22 18,300,000
100,000 IRVINE RANCH CA WATER DISTRICT
CONSOLIDATED BONDS LANDESBANK
HESSEN-THURGEN LOC 3.40 10/01/05 100,000
18,400,000
--------------
COLORADO - 1.71%
1,500,000 COLORADO HOUSING FINANCE
AUTHORITY MFHR MULTI-FAMILY
DIAMOND 1 SERIES FNMA INSURED 3.95 10/15/16 1,500,000
8,700,000 DENVER CO CITY & COUNTY SD #1
FRN PT 1135 3.90 12/01/19 8,700,000
300,000 DENVER CO CITY & COUNTY GO
SERIES A 5.60 08/01/00 301,667
3,000,000 EAGLE RANCH METROPOLITAN
DISTRICT CO GO SOCIETE
GENERALE LOC 3.95 10/15/18 3,000,000
4,535,000 JEFFERSON COUNTY CO SD #R-001
TAX ANTICIPATION 4.50 06/30/00 4,543,165
1,600,000 MOFFAT COUNTY CO PCR AMBAC
INSURED 3.95 07/01/10 1,600,000
19,644,832
--------------
FLORIDA - 1.92%
1,900,000 DADE COUNTY FL IDA RV
GUARANTEED BY ADP INCORPORATED 4.30 11/15/17 1,900,000
1,175,000 FLORIDA STATE FRN SERIES 117 3.98 07/01/27 1,175,000
18,900,000 LAUREL CLUB CERTIFICATE TRUST
COP SERIES A SWISS BANK LOC 4.05 06/01/25 18,900,000
21,975,000
--------------
GEORGIA - 1.73%
1,500,000 BUFORD GA HOUSING AUTHORITY
MFHR SERIES 1172 4.09 09/01/25 1,500,000
500,000 CLAYTON COUNTY GA HOUSING
AUTHORITY MFHR RIVERS EDGE
DEVELOPMENT BANKERS TRUST
COMPANY LOC 3.95 08/01/06 500,000
3,500,000 COBB COUNTY GA SD GO BANK OF
AMERICA LOC 4.38 12/29/00 3,510,147
2,695,000 FULTON COUNTY GA IDR
GUARANTEED BY ADP INCORPORATED 4.25 09/01/12 2,695,000
</TABLE>
31
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
GEORGIA (continued)
$ 3,400,000 FULTON COUNTY GA RESIDENTIAL
CARE FACILITIES HEALTH CARE RV
LENBROOK SQUARE FOUNDATION
RABOBANK NEDERLAND LOC 4.00% 01/01/18 $ 3,400,000
4,895,000 GEORGIA LOCAL GOVERNMENT COP
SERIES PT 1060 MBIA INSURED 3.96 06/01/28 4,895,000
3,300,000 RICHMOND COUNTY GA DEVELOPMENT
AUTHORITY SOLID WASTE DISPOSAL
IDR EVERGREEN NYLON BANQUE
NATIONALE PARIS LOC 3.95 07/01/32 3,300,000
19,800,147
--------------
HAWAII - 1.45%
4,150,000 HAWAII STATE DEPARTMENT OF
BUDGET & FINANCE SPECIAL
PURPOSE MORTGAGE RV KUAKINI
MEDICAL CENTER PROJECT BANK OF
HAWAII LOC 4.10 07/01/04 4,150,000
1,900,000 HAWAII STATE GO SERIES CQ FGIC
INSURED 5.00 10/01/00 1,909,088
600,000 HAWAII STATE SERIES PA 483 3.96 03/01/14 600,000
9,920,000 HONOLULU HI CITY & COUNTY FRN
PT 1150 FGIC INSURED 3.96 07/01/15 9,920,000
16,579,088
--------------
IDAHO - 0.39%
1,500,000 NEZ PERCE COUNTY ID PCR BONDS
RATE-DATES-POTLATCH 84 BANK
ONE CHICAGO LOC 3.95 12/01/14 1,500,000
3,000,000 NEZ PERCE COUNTY ID PCR BONDS
POTLATCH CORPORATION PROJECT
BANK ONE CHICAGO LOC 3.95 12/01/07 3,000,000
4,500,000
--------------
ILLINOIS - 8.87%
1,000,000 BEDFORD PARK IL IDR GUARANTEED
BY CPC INTERNATIONAL 5.76 11/01/08 1,000,000
1,000,000 CHICAGO IL SCHOOL FINANCE
AUTHORITY GO 4.50 06/01/00 1,000,935
9,700,000 CHICAGO IL GO BONDS EQUIPMENT
NOTES HARRIS TRUST & SAVINGS
LOC MANDATORY PUT 10/5/00 @
100 3.90 01/01/06 9,700,000
14,800,000 CHICAGO IL GO BONDS SERIES A
LANDESBANK HESSEN LOC 3.90 01/03/02 14,800,000
3,785,000 COOK COUNTY IL MUNICIPAL TRUST
RECEIPTS SERIES SG-7 MBIA
INSURED 3.96 11/15/23 3,785,000
2,260,000 ILLINOIS DEVELOPMENT FINANCE
AUTHORITY DEVELOPMENT RV
AMERICAN COLLEGE OCCUPATIONAL
LOC AMERICAN NATIONAL 4.00 10/01/18 2,260,000
5,000,000 ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY RV ART
INSTITUTE CHICAGO SERIES A 3.95 03/01/34 5,000,000
200,000 ILLINOIS HFFA RV ELMHURST
MEMORIAL HOSPITAL SERIES B
RABOBANK NEDERLAND LOC 4.10 01/01/20 200,000
4,195,000 ILLINOIS HFFA RV MEMORIAL
MEDICAL CENTER SERIES C
KREDIETBANK N.V. LOC 3.90 01/01/16 4,195,000
3,305,000 ILLINOIS HFFA RV PALOS
COMMUNITY HOSPITAL SERIES B 3.90 12/01/15 3,305,000
24,200,000 ILLINOIS HFFA RV EVANSTON
HOSPITAL CORPORATION 3.45 08/15/30 24,200,000
1,325,000 ILLINOIS HFFA RV SERIES 166
AMBAC INSURED 3.98 02/15/24 1,325,000
4,000,000 ILLINOIS HFFA RV SWEDISH
COVENANT HOSPITAL SERIES A
AMBAC INSURED 3.85 08/15/27 4,000,000
10,000,000 ILLINOIS HOUSING DEVELOPMENT
AUTHORITY MFHR ILLINOIS
CONTROL APARTMENTS
METROPOLITAN LIFE LOC 3.70 01/01/08 10,000,000
5,000,000 ILLINOIS DEVELOPMENT FINANCE
AUTHORITY RV NORTH PARK
UNIVERSITY PROJECT AMERICAN
NATIONAL B&T LOC 3.85 10/01/29 5,000,000
6,800,000 LOMBARD IL IDR 2500 HIGHLAND
AVENUE, MID-AMERICAN FEDERAL
SAVINGS & LOAN LOC 4.25 12/01/06 6,800,000
1,200,000 SCHAUMBERG IL MFHR WINDSONG
APARTMENTS PROJECT LASALLE
NATIONAL BANK LOC 4.00 02/01/24 1,200,000
4,000,000 SPRINGFIELD IL TRANSPORTATION
RV GUARANTEED BY ALLIED SIGNAL 4.00 10/15/16 4,000,000
101,770,935
--------------
INDIANA - 3.27%
2,150,000 INDIANA HFFA RV CAP ACCESS
DESIGNATED POOL COMERICA BANK
LOC 3.90 01/01/12 2,150,000
</TABLE>
32
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
INDIANA (continued)
$15,950,000 INDIANA HFFA RV ASCENSION
HEALTH CREDIT SERIES B 3.85% 11/15/39 $ 15,950,000
1,000,000 INDIANA HFFA RV CAPITAL ACCESS
COMERICA BANK LOC 3.90 04/01/13 1,000,000
3,010,000 INDIANA STATE DEVELOPMENT
FINANCIAL AUTHORITY
EDUCATIONAL FACILITIES RV
LUTHERAN PROJECT FIRST OF
AMERICA BANK LOC 4.00 10/01/17 3,010,000
2,000,000 INDIANA STATE EDUCATIONAL
FACILITIES AUTHORITY RV ST.
MARY PROJECT NBD BANK LOC 3.95 02/15/26 2,000,000
5,000,000 INDIANAPOLIS IN AIRPORT
AUTHORITY RV SERIES PA 632 4.21 11/15/31 5,000,000
3,010,000 INDIANAPOLIS IN ECONOMIC
DEVELOPMENT RV VISITING NURSE
SERVICE FOUNDATION FIRST OF
AMERICA BANK LOC 4.00 03/01/13 3,010,000
500,000 INDIANAPOLIS IN LOCAL PUBLIC
IMPROVEMENT BOND BANK RV
SERIES A 7.40 01/01/20 514,006
1,800,000 INDIANAPOLIS IN RESOURCE
RECOVER REVENUE PCR OGDEN
MARTIN SYSTEM INCORPORATED
WESTDEUTSCHE LANDESBANK LOC 4.10 12/01/16 1,800,000
3,125,000 PORTAGE IN ECONOMIC
DEVELOPMENT RV PEDCOR
INVESTMENTS PROJECT SERIES A
FHLB INSURED 4.00 08/01/30 3,125,000
37,559,006
--------------
IOWA - 3.18%
4,400,000 DES MOINES IA IDR GRAND OFFICE
PARK GUARANTEED BY PRINCIPAL
MUTUAL LIFE 4.15 04/01/15 4,400,000
4,710,000 IOWA HIGHER AUTHORITY RV
PRIVATE SCHOOL FACILITIES
WARTBURG PROJECT 4.00 03/01/30 4,710,000
3,400,000 IOWA HEFA RV ANTICIPATION NOTE
MORNINGSIDE PROJECT SERIES G 3.50 05/24/00 3,400,686
13,390,000 IOWA SCHOOL CORPORATION
EDUCATIONAL FACILITIES RV
WARRANTS CERTIFICATES FSA
INSURED 4.75 02/01/01 13,464,738
4,700,000 MASON CITY IA IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK LOC 4.10 09/01/14 4,700,000
5,800,000 URBANDALE IA IDR INTERSTATE
ACRES L.P. PROJECT GUARANTEED
BY PRINCIPAL MUTUAL LIFE
INSURANCE 4.05 12/01/14 5,800,000
36,475,424
--------------
KANSAS - 1.24%
13,000,000 JOHNSON COUNTY KS SD # 232 GO 4.25 09/01/00 13,012,593
1,200,000 PRAIRIE VILLAGE KS MFHR J.C.
NICHOLS COMPANY PROJECT
GUARANTEED BY PRINCIPAL MUTUAL
LIFE INSURANCE 4.20 12/01/15 1,200,000
14,212,593
--------------
KENTUCKY - 2.83%
2,900,000 KENTUCKY ASSET/LIABILITY
COMMON TAX & REVENUE 4.50 06/28/00 2,904,468
5,310,000 KENTUCKY STATE TURNPIKE
AUTHORITY RESOURCE RECOVERY
ROAD RV SERIES 17 FSA INSURED 4.00 07/01/03 5,310,000
1,200,000 MAYFIELD KY MULTI-CITY LEASE
RV PNC BANK LOC 4.00 07/01/26 1,200,000
22,995,000 RUSSELL KY RV 4.06 12/01/00 22,995,000
32,409,468
--------------
LOUISIANA - 5.57%
3,670,000 CALCASIEU PARISH LA SALES TAX
DISTRICT NO. 4 TAX RV ROAD
IMPROVEMENT CREDIT DE FRANCE
LOC 3.90 09/01/01 3,670,000
5,000,000 JEFFERSON PARISH LA HOME
MORTGAGE AUTHORITY SFHR
SERIES B 4.25 10/01/00 5,000,000
13,810,000 JEFFERSON PARISH LA HOSPITAL
SERVICES DISTRICT #2 HEALTH
CARE RV WEST JEFFERSON MEDICAL
CENTER PROJECT 3.96 12/01/15 13,810,000
2,500,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV WILLIS
KNIGHTON MEDICAL PROJECT AMBAC
INSURED 4.00 09/01/23 2,500,000
3,000,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV WILLIS
KNIGHTON MEDICAL CENTER
PROJECT 4.00 09/01/25 3,000,000
</TABLE>
33
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
LOUISIANA (continued)
$14,500,000 LOUISIANA PUBLIC FACILITIES
AUTHORITY HOSPITAL RV WILLIS
KNIGHTON MEDICAL CENTER AMBAC
INSURED 4.00% 09/01/27 $ 14,500,000
6,710,000 LOUISIANA STATE HEALTH
EDUCATION AUTHORITY RV 3.96 10/01/17 6,710,000
9,700,000 NATCHITOCHES PARISH LA TRUST
JOIST CORPORATION PROJECT
WACHOVIA BANK LOC 4.20 10/01/00 9,700,000
5,000,000 WEST BATON ROUGE PARISH LA
INDUSTRIAL DISTRICT NO. 3 IDR
DOW CHEMICAL COMPANY PROJECT 4.10 12/01/23 5,000,000
63,890,000
--------------
MAINE - 1.01%
9,950,000 MAINE HEHFA RV PIPER SHORES
SERIES B PARIBAS LOC 4.00 01/01/29 9,950,000
1,600,000 REGIONAL WASTE SYSTEMS
INCORPORATED ME SOLID WASTE
RECOVERY RV SERIES K 4.00 07/01/12 1,600,000
11,550,000
--------------
MARYLAND - 2.11%
14,750,000 HOWARD COUNTY MD CONSERVATIVE
PUBLIC IMPROVEMENT GO
SERIES A 3.07 04/14/00 14,749,121
7,700,000 HOWARD COUNTY MD MFHR SHERWOOD
CROSSING LIMITED PROJECT
GUARDIAN SAVINGS & LOAN LOC
MANDATORY PUT 6/1/00 @ 100 3.30 06/01/15 7,700,000
1,800,000 MARYLAND STATE HEHFA RV
CATHOLIC HEALTH SERIES B
MORGAN GUARANTY TRUST LOC 3.95 12/01/15 1,800,000
24,249,121
--------------
MASSACHUSETTS - 0.25%
2,800,000 CANTON MA HOUSING AUTHORITY
MULTIFAMILY HOUSING MORTGAGE
REVENUE CANTON ARBORETUM
APARTMENTS 3.95 09/15/26 2,800,000
--------------
MICHIGAN - 2.62%
5,600,000 MICHIGAN STATE BUILDING
AUTHORITY REVENUE FACILITIES
PROJECT SERIES II 5.00 10/15/00 5,633,352
9,600,000 MICHIGAN STATE STRATEGIC FUND
LIMITED OBLIGATION IDR DOW
CHEMICAL PROJECT 4.10 12/01/29 9,600,000
600,000 MICHIGAN STATE HIGHER
EDUCATION LOAN RV
SERIES XII-B AMBAC INSURED 3.90 10/01/13 600,000
1,200,000 MICHIGAN STATE HOSPITAL
FINANCE AUTHORITY RV HOSPITAL
EQUIPMENT LOAN PROGRAM
SERIES A FIRST OF AMERICA BANK
LOC 3.85 12/01/23 1,200,000
2,410,000 MICHIGAN STATE HOSPITAL
FINANCIAL AUTHORITY RV,
HOSPITAL EQUIPMENT LOAN
PROGRAM SERIES A FIRST OF
AMERICA BANK LOC 3.85 12/01/23 2,410,000
10,300,000 MICHIGAN STATE STRATEGIC FUND
LIMITED OBLIGATION RV MERCY
SERVICES FOR AGING PROJECT
GOLDMAN SACHS & COMPANY LOC
COLL USG P/R 5/15/00 @ 102 9.40 05/15/20 10,567,483
30,010,835
--------------
MINNESOTA - 9.22%
600,000 ARDEN HILLS MN HOUSING &
HEALTH CARE FACILITIES RV
PRESBYTERIAN HOMES SERIES B
U.S. BANK LOC 4.00 09/01/29 600,000
5,400,000 BLAINE MN IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
CORPORATION LOC 4.00 11/01/13 5,400,000
1,565,000 CITY OF ROCHESTER MN 3.85 05/03/00 1,565,000
1,500,000 CITY OF ROCHESTER MN 3.85 05/03/00 1,500,000
5,000,000 CITY OF ROCHESTER MN SERIES B 3.60 04/10/00 5,000,000
2,900,000 CRYSTAL MN MFHR CRYSTAL
APARTMENTS L.P. PROJECT FHLB
LOC 3.85 05/01/27 2,900,000
3,000,000 DAKOTA COUNTY MN DEVELOPMENT
AGENCY IDR FNMA & GNMA
MORTGAGE BACKED SERIES C
FNMA & GNMA INSURED 4.30 04/01/01 3,000,000
1,000,000 DULUTH MN EDA HEALTH CARE
FACILITIES RV MILLER DWAN
MEDICAL CENTER PROJECT CREDIT
LOCAL DE FRANCE LOC 4.00 06/01/19 1,000,000
4,355,000 DULUTH MN TAX INCREMENT RV
LAKE SUPERIOR PAPER WACHOVIA
BANK GEORGIA LOC 3.90 09/01/10 4,355,000
5,000,000 EDINA MN MFHR EDINA PARK PLAZA
FHLMC LOC 3.85 12/01/29 5,000,000
</TABLE>
34
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MINNESOTA (continued)
$ 5,800,000 GOLDEN VALLEY MN IDA RV
UNICARE HOMES PROJECT BANK OF
AMERICA LOC 3.85% 09/01/14 $ 5,800,000
4,900,000 MANKATO MN MFHR HIGHLAND HILLS
PROJECT FIRST BANK LOC 4.00 05/01/27 4,900,000
1,900,000 MINNEAPOLIS & ST. PAUL MN
HOUSING & REDEVELOPMENT
AUTHORITY HEALTH CARE SYSTEM
HEALTHONE OBLIGATED GROUP
PROJECT SERIES B 8.00 08/15/14 1,966,258
7,645,000 MINNESOTA SD TAX & AID
ANTICIPATION BORROWING PROGRAM
COP TAX ANTICIPATION
CERTIFICATES INDEBENTURES
SERIES A 3.45 08/15/00 7,645,000
6,485,000 MINNESOTA SD TAX & AID
ANTICIPATION COP TAX
ANTICIPATION CERTIFICATE
INDEBENTURES SERIES A 4.25 02/28/01 6,487,677
4,800,000 MINNESOTA STATE HEFA RV
UNIVERSITY OF ST. THOMAS
SERIES C 3.85 04/01/25 4,800,000
10,985,000 MINNESOTA STATE HFA SFHR
SERIES G 3.45 01/01/17 10,985,000
8,190,000 MINNESOTA STATE GO BONDS 4.50 06/01/00 8,205,795
3,000,000 OLMSTED COUNTY MN HOUSING &
REDEVELOPMENT AUTHORITY RV
COLL BY USG P/R 2/1/01 @ 100 7.00 02/01/13 3,069,854
6,800,000 ROBBINSDALE MN IDR UNICARE
HOMES INCORPORATED PROJECT
BANK OF AMERICA LOC 3.85 10/01/14 6,800,000
1,275,000 SOUTHERN MINNESOTA MUNICIPAL
POWER AGENCY POWER RV
SERIES A FGIC- TCRS INSURED 5.30 01/01/01 1,286,057
3,900,000 ST. LOUIS PARK MN HOSPITAL RV
METHODIST HOSPITAL SERIES C
AMBAC INSURED 7.25 07/01/18 4,008,226
8,550,000 ST. PAUL MN HOUSING &
REDEVELOPMENT AUTHORITY
UTILITIES RV CREDIT LOCAL DE
FRANCE LOC 3.85 12/01/12 8,550,000
1,000,000 ST. PAUL MN PORT AUTHORITY IDR
TEXAS PROJECT SERIES A U.S.
BANK N.A. LOC 4.00 06/01/10 1,000,000
105,823,867
--------------
MISSISSIPPI - 0.44%
5,000,000 MISSISSIPPI BUSINESS FINANCE
CORPORATION MISSISSIPPI RV
MISSISSIPPI COLLEGE PROJECT
SERIES B BANK OF AMERICA N.A.
LOC 4.00 02/01/09 5,000,000
--------------
MISSOURI - 5.96%
2,500,000 CALLAWAY COUNTY MO INDUSTRIAL
DEVELOPMENT AUTHORITY HEALTH
SYSTEM RV BANK OF AMERICA N.A.
INSURED 4.05 04/01/15 2,500,000
2,100,000 KANSAS CITY MO IDA MFHR J.C.
NICHOLS COMPANY PROJECT
GUARANTEED BY PRINCIPAL MUTUAL
LIFE INSURANCE 4.20 05/01/15 2,100,000
14,570,000 KANSAS CITY MO IDA MFHR COACH
HOUSE II PROJECT GUARANTEED BY
PRINCIPAL MUTUAL LIFE
INSURANCE 4.20 12/01/15 14,570,000
5,700,000 MISSOURI HIGHER EDUCATION LOAN
AUTHORITY STUDENT LOAN RV
SERIES A STATE STREET B&T
COMPANY LOC 3.95 06/01/17 5,700,000
10,000,000 MISSOURI HIGHER EDUCATION LOAN
AUTHORITY STUDENT LOAN RV
SERIES B GUARANTEED BY STUDENT
LOANS 3.95 06/01/20 10,000,000
2,875,000 MISSOURI STATE DEVELOPMENT
FINANCIAL BOARD RECREATIONAL
FACILITIES RV YMCA GREATER ST.
LOUIS PROJECT SERIES B BANK OF
AMERICA N.A. INSURED 4.00 09/01/02 2,875,000
21,600,000 MISSOURI STATE DEVELOPMENT
FINANCIAL BOARD LEASE RV
MISSOURI ASSOCIATION MUNICIPAL
UTILITIES LEASE PROJECT
SPA-TRANSAMERICA LIFE
INSURANCE 4.00 12/01/22 21,600,000
2,400,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES
AUTHORITY RV SERIES G 3.50 04/29/00 2,400,459
2,400,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES
AUTHORITY RV SERIES H 3.50 04/29/00 2,400,459
300,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES
AUTHORITY RV SERIES A 3.50 04/29/00 300,059
1,200,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES RV
ROCKHURST COLLEGE AIB GROUP
LOC 3.90 11/01/25 1,200,000
2,700,000 MISSOURI STATE HEALTH &
EDUCATIONAL FACILITIES RV ST.
FRANCIS MEDICAL CENTER
SERIES A CREDIT LOCAL DE
FRANCE LOC 4.00 06/01/26 2,700,000
68,345,977
--------------
</TABLE>
35
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
MONTANA - 0.62%
$ 7,140,000 MONTANA STATE BOARD OF
INVESTMENTS MUNICIPAL 4.35% 03/01/09 $ 7,140,000
--------------
NEBRASKA - 0.16%
1,800,000 NORFOLK NE IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK OF GEORGIA LOC 4.10 11/01/14 1,800,000
--------------
NEW HAMPSHIRE - 1.32%
15,100,000 NEW HAMPSHIRE STATE GO 4.00 06/06/00 15,100,000
--------------
NEW MEXICO - 1.43%
2,400,000 BLOOMFIELD NM GO SERIES A LA
SALLE NATIONAL BANK LOC 4.10 11/15/10 2,400,000
2,565,000 ESPANOLA NM HEALTH CARE RV
SERIES A LA SALLE NATIONAL
BANK LOC 4.10 11/15/10 2,565,000
4,680,000 FARMINGTON NM PCR ARIZONA
PUBLIC SERVICE COMPANY
SERIES B BARCLAYS BANK LOC 4.00 09/01/24 4,680,000
5,200,000 NEW MEXICO STATE TRAN
SERIES A 4.00 06/30/00 5,209,314
1,585,000 SILVER CITY NM GO SERIES A LA
SALLE NATIONAL BANK LOC 4.10 11/15/10 1,585,000
16,439,314
--------------
NEW YORK - 5.58%
16,695,000 IBM TAX EXEMPT GRANTOR TRUST
OTHER RV IBM PROJECT
SERIES 1999-C 4.11 03/14/06 16,695,000
22,945,000 LONG ISLAND POWER AUTHORITY NY
ELECTRIC SYSTEM RV FRN PA 586 4.06 12/01/29 22,945,000
7,560,000 NEW YORK STATE MEDICAL CARE
FACILITIES FINANCE AGENCY
HEALTH CARE RV CREDIT SUISSE
LOC 3.75 02/15/13 7,560,000
6,570,000 NEW YORK STATE URBAN
DEVELOPMENT REVENUE BONDS 7.63 01/01/06 6,854,654
10,000,000 NEW YORK NY TRANSPORTATION RV
SERIES A-50 REGION D 4.00 04/14/00 10,000,000
64,054,654
--------------
NORTH CAROLINA - 0.01%
100,000 NORTH CAROLINA MEDICAL CARE
COMMUNITY HOSPITAL RV
VAR-MOSES H. CONE MEMORIAL
HOSPITAL PROJECT 3.95 09/01/02 100,000
--------------
NORTH DAKOTA - 0.13%
1,500,000 BISMARCK ND IDR SUPERVALU
INCORPORATED PROJECT WACHOVIA
BANK & TRUST LOC 4.00 04/01/09 1,500,000
--------------
OHIO - 2.32%
14,481,000 ABN AMRO LEASETOPS 2000-1
LEASETOPS CERTIFICATES
ABN-AMRO BANK N.V. LOC 4.28 08/07/02 14,481,000
5,000,000 HAMILTON COUNTY OH IDR
COMMUNITY URBAN REDEVELOPMENT
PROJECT NATIONAL WESTMINSTER
LOC 4.15 10/15/12 5,000,000
2,800,000 WARREN COUNTY OH IDR
CINCINNATI ELECTRIC
CORPORATION PROJECT ROYAL BANK
OF CANADA LOC 4.10 09/01/15 2,800,000
4,300,000 WOOSTER OH IDR ALLEN GROUP
INCORPORATED NATIONAL BANK OF
DETROIT LOC 4.10 12/01/10 4,300,000
26,581,000
--------------
OKLAHOMA - 1.56%
2,515,000 OKLAHOMA COUNTY OK FINANCE
AUTHORITY IDR PERRINE OFFICE
PROJECT FGIC INSURED 4.25 12/01/14 2,515,000
2,625,000 OKLAHOMA COUNTY OK IDR CARBON
OFFICE FGIC INSURED 4.25 12/01/14 2,625,000
7,750,000 OKLAHOMA STATE WATER RESOURCES
BOARD 4.05 09/01/26 7,750,000
5,000,000 TULSA PORT CATOOSA OK IDA RV
ASPHALT PRODUCTIONS BANK OF
AMERICA LOC 4.15 10/01/09 5,000,000
17,890,000
--------------
OREGON - 0.02%
200,000 OREGON STATE HOUSING &
COMMUNITY SERVICES DEPARTMENT
SFHR SERIES D 3.20 04/13/00 200,000
--------------
</TABLE>
36
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
OTHER - 1.69%
$13,800,000 KOCH 4.12% 10/06/03 $ 13,800,000
5,615,484 PITNEY BOWES CREDIT
CORPORATION LEASETOPS TRUST
SERIES 1999-2 AMBAC INSURED 4.33 03/16/05 5,615,484
19,415,484
--------------
PENNSYLVANIA - 2.64%
2,090,000 ALLEGHENY COUNTY PA GO
SERIES C-34 MBIA-IBC INSURED 8.50 02/15/01 2,165,658
1,100,000 BUTLER COUNTY PA IDA PCR
PENNZOIL COMPANY PROJECT
MELLON BANK LOC 4.10 12/01/12 1,100,000
5,145,000 CHARTIERS VALLEY PA
INDUSTRIAL & COMMERCIAL
DEVELOPMENT AUTHORITY IDR
GUARANTEED BY ADP INCORPORATED 4.30 11/15/17 5,145,000
2,490,000 PENNSYLVANIA INTERGOVERNMENTAL
COOPERATIVE AUTHORITY SPECIAL
TAX RV MBIA INSURED 3.96 06/15/23 2,490,000
2,200,000 PENNSYLVANIA STATE HIGHER
EDUCATION ASSISTANCE AGENCY
STUDENT LOAN RV SERIES A
AMBAC INSURED 3.90 06/01/29 2,200,000
9,500,000 QUAKERTOWN PA GENERAL
AUTHORITY RV POOLED FINANCING
PROGRAM SERIES A PNC BANK LOC 4.00 06/01/28 9,500,000
3,000,000 QUAKERTOWN PA HEALTH CARE RV
HOSPITAL GROUP POOLED
FINANCING SERIES A PNC BANK
LOC 4.00 07/01/26 3,000,000
4,700,000 QUAKERTOWN PA HEALTH CARE RV
HOSPITAL GROUP POOLED
FINANCING PNC BANK LOC 4.00 07/01/05 4,700,000
30,300,658
--------------
PUERTO RICO - 0.03%
400,000 PUERTO RICO COMMONWEALTH OTHER
RV SERIES D BANK OF NEW YORK
LOC 3.85 07/30/00 400,000
--------------
RHODE ISLAND - 0.17%
1,000,000 RHODE ISLAND STATE GO CONSUMER
CAPITAL DEVELOPMENT SERIES B
FSA INSURED 6.10 05/15/03 1,022,625
900,000 RHODE ISLAND MANDATORY PUT
5/15/00 @ 100 6.00 05/15/02 920,757
1,943,382
--------------
SOUTH CAROLINA - 1.97%
3,000,000 PIEDMONT MUNICIPAL POWER
AGENCY SC ELECTRIC RV
SERIES C MBIA INSURED 3.90 01/01/22 3,000,000
5,600,000 SOUTH CAROLINA JOBS ECONOMIC
DEVELOPMENT AUTHORITY ECONOMIC
DEVELOPMENT RV LATI INDUSTRIES
INCORPORATED PROJECT BANK OF
AMERICA N.A. LOC 4.15 08/01/14 5,600,000
1,300,000 SOUTH CAROLINA STATE
EDUCATIONAL FACILITIES
AUTHORITY FOR PRIVATE
NON-PROFIT INSITUTIONS FURMAN
UNIVERSITY PROJECT SERIES B 3.95 10/01/26 1,300,000
4,655,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY UTILITIES RV
FGIC INSURED 3.96 01/01/23 4,655,000
8,055,000 SOUTH CAROLINA STATE PUBLIC
SERVICE AUTHORITY RV
SERIES SG-2 MBIA INSURED 3.96 07/01/21 8,055,000
22,610,000
--------------
TENNESSEE - 1.43%
10,000,000 CLARKSVILLE TN PUBLIC BUILDING
AUTHORITY RV POOLED FINANCING
TENNESSEE MUNICIPAL BOND
FUNDING BANK OF AMERICA LOC 4.00 06/01/29 10,000,000
4,300,000 JOHNSON CITY TN HEALTH &
EDUCATIONAL RV SERIES A 4.00 07/01/21 4,300,000
2,100,000 METROPOLITAN GOVERNMENTS OF
NASHVILLE & DAVIDSON COUNTIES
TN HEALTH & EDUCATION
FACILITIES RV ALIVE HOSPICE
INCORPORATED PROJECT 4.00 08/01/19 2,100,000
16,400,000
--------------
TEXAS - 8.17%
14,590,000 AUSTIN TX UTILITIES SYSTEM RV
SERIES G AMBAC INSURED 3.96 11/15/11 14,590,000
</TABLE>
37
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
TEXAS (continued)
$ 1,100,000 BEXAR COUNTY TX HOUSING
FINANCE CORPORATION MFHR
CREIGHTONS MILL DEVELOPMENT
PROJECT SERIES A GUARANTEED BY
NEW ENGLAND MUTUAL LIFE
INSURANCE COMPANY 3.90% 08/01/06 $ 1,100,000
4,750,000 BEXAR COUNTY TX HOUSING
FINANCE CORPORATION MFHR PARK
HILL DEVELOPMENT PROJECT
SERIES B GUARANTEED BY NEW
ENGLAND MUTUAL LIFE INSURANCE
COMPANY 3.90 06/01/05 4,750,000
8,000,000 HARRIS COUNTY TX HEALTH
FACILITIES DEVELOPMENT
CORPORATION HOSPITAL RV
MEMORIAL HOSPITAL SYSTEM
PROJECT SERIES B MBIA INSURED 3.85 06/01/24 8,000,000
5,000,000 HARRIS COUNTY TX HOUSING
FINANCE CORPORATION ARBOR II
LIMITED PROJECT 4.00 10/01/05 5,000,000
3,670,000 HOUSTON TX WATER & SEWER
SYSTEMS RV MUNICIPAL TRUST
RECIEPTS SERIES SG 120 FGIC
INSURED 3.96 12/01/23 3,670,000
1,000,000 PANHANDLE-PLAINS TX HIGHER
EDUCATION AUTHORITY
INCORPORATED STUDENT LOAN RV
SERIES A STUDENT LOAN
MARKETING LOC 3.90 06/01/21 1,000,000
16,900,000 SOUTH TEXAS HIGHER EDUCATION
AUTHORITY INCORPORATED
EDUCATIONAL FACILITIES RV MBIA
INSURED 3.90 12/01/29 16,900,000
920,000 TARRANT COUNTY TX MFHR SINGLE
FAMILY APARTMENTS PROJECT
SUNTRUST BANK NASHVILLE LOC 3.95 11/01/17 920,000
2,900,000 TEXAS STATE DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS
SFHR SERIES PT 136 MBIA
INSURED 3.99 03/01/17 2,900,000
1,700,000 TEXAS STATE DEPARTMENT OF
HOUSING AND COMMUNITY AFFAIRS
MFHR SERIES 1215 4.14 12/01/39 1,700,000
6,795,000 TEXAS STATE FRN PA 560 3.96 08/01/24 6,795,000
600,000 TEXAS STATE GO PUBLIC FINANCE
AUTHORITY SERIES B 5.25 10/01/00 603,888
16,600,000 TEXAS STATE TRAN SERIES A 4.50 08/31/00 16,648,303
9,115,000 TRAVIS COUNTY TX HOUSING
FINANCE CORPORATION MFHR
SERIES 1144 4.26 01/01/41 9,115,000
93,692,191
--------------
UTAH - 0.32%
3,630,000 INTERMOUNTAIN POWER AGENCY
POWER SUPPLY RV SERIES C MBIA
INSURED 6.00 07/01/00 3,647,460
--------------
VERMONT - 0.07%
800,000 VERMONT HFA SFHR SERIES 11B 3.70 09/07/00 800,000
--------------
VIRGINIA - 0.35%
4,000,000 VIRGINIA STATE PUBLIC SCHOOL
AUTHORITY PUTTERS SERIES 109 3.98 08/01/17 4,000,000
--------------
WASHINGTON - 5.56%
8,000,000 LAKE TAPPS PARKWAY, WA 4.00 12/01/19 8,000,000
3,690,000 PORT ANACORTES WA IDA 3.90 07/11/00 3,690,000
6,500,000 SEATTLE WA MUNICIPAL LIGHT &
POWER RV SERIES B MORGAN
GUARANTY TRUST LOC 3.95 05/04/00 6,500,000
7,600,000 WASHINGTON PUBLIC POWER SUPPLY
SYSTEM POWER RV NUCLEAR
PROJECT #1 MUNICIPAL
SECURITIES TRUST RECEIPTS
SERIES CMC2 3.95 07/01/07 7,600,000
1,000,000 WASHINGTON PUBLIC POWER SUPPLY
SYSTEM POWER RV NUCLEAR
PROJECT #3 SERIES 13 MBIA
INSURED 3.96 07/01/15 1,000,000
1,300,000 WASHINGTON STATE EDA RV
PACIFIC COAST SCHREDDING
SERIES D 4.15 08/01/14 1,300,000
10,260,000 WASHINGTON STATE HOUSING
FINANCE COMMISSION MFHR
SERIES 1219 4.14 12/22/29 10,260,000
9,600,000 WASHINGTON STATE PUBLIC POWER
SUPPLY SYSTEM NUCLEAR PROJECT
#2 POWER RV AMBAC INSURED 3.95 07/01/07 9,600,000
4,575,000 WASHINGTON STATE GO SERIES A 6.50 07/01/00 4,602,239
3,950,000 WASHINGTON STATE HEALTH CARE
FACILITIES AUTHORITY RV
SISTERS PROVIDENCE SERIES B
RABOBANK NEDERLAND LOC 4.00 10/01/05 3,950,000
</TABLE>
38
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE+ VALUE
<C> <S> <C> <C> <C>
WASHINGTON (continued)
$ 7,325,000 WASHINGTON STATE HEALTH CARE
FACILITIES AUTHORITY RV MILL
POINTE APARTMENTS PROJECT
SERIES A U.S. BANK TRUST N.A.
LOC 4.10% 01/01/30 $ 7,325,000
63,827,239
--------------
WASHINGTON D.C. - 0.25%
2,900,000 DISTRICT OF COLUMBIA 3.96 06/01/10 2,900,000
--------------
WISCONSIN - 2.15%
1,000,000 BELOIT & ROCK COUNTY WI IDR
GUARANTEED BY CPC
INTERNATIONAL 5.76 04/01/19 1,000,000
1,405,000 JOHNSON CONTROLS INCORPORATED
TAX-EXEMPT BOND GRANTOR TRUST
WACHOVIA CORPORATION LOC 4.30 10/01/01 1,405,000
10,000,000 MILWAUKEE WI GO 4.00 09/07/00 10,000,000
3,650,000 PORTAGE COUNTY WI BOND
ANTICIPATION NOTES 4.50 06/01/00 3,650,000
6,240,000 WISCONSIN HOUSING & ECONOMIC
DEVELOPMENT AUTHORITY HOME
OWNERSHIP RV 4.01 09/01/26 6,240,000
2,400,000 WISCONSIN STATE SCHOOL
DISTRICTS CASH FLOW MANAGEMENT
PROGRAM COP RV SERIES A-2 3.80 09/28/00 2,400,000
24,695,000
--------------
WYOMING - 1.29%
1,000,000 GREEN RIVER WY PCR ALLIED
CORPORATION PROJECT GUARANTEED
BY ALLIED SIGNAL CORPORATION 4.80 12/01/12 1,000,000
4,800,000 UNITA COUNTY WY PCR CHEVRON
U.S.A. INCORPORATED PROJECT 3.85 08/15/20 4,800,000
9,050,000 UNITA COUNTY WY PCR AMOCO
PROJECT 3.95 07/01/26 9,050,000
14,850,000
--------------
TOTAL MUNICIPAL SECURITIES (COST
$1,121,490,559) 1,121,490,559
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,121,490,559)* 97.76% $1,121,490,559
OTHER ASSETS AND LIABILITIES NET 2.24 25,724,020
------- --------------
TOTAL NET ASSETS 100.00% $1,147,214,579
------- --------------
------- --------------
</TABLE>
+ SECURITIES WITH MATURITIES IN EXCESS OF 397 DAYS ARE SUBJECT TO A FEATURE
WHICH REDUCES THE REMAINING MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
39
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
100% TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U.S. TREASURY SECURITIES - 77.78%
U. S. TREASURY BILLS - 48.45%
$ 50,000,000 U.S. TREASURY BILLS 5.79{::}% 06/29/00 $ 49,330,584
34,500,000 U.S. TREASURY BILLS 6.11{::} 04/18/00 34,413,659
75,000,000 U.S. TREASURY BILLS 5.50{::} 04/20/00 74,810,875
100,000,000 U.S. TREASURY BILLS 6.09{::} 04/20/00 99,717,476
120,000,000 U.S. TREASURY BILLS 5.71{::} 04/27/00 119,557,000
1,265,000 U.S. TREASURY BILLS 5.73{::} 04/27/00 1,260,210
75,000,000 U.S. TREASURY BILLS 5.84{::} 04/27/00 74,714,750
125,000,000 U.S. TREASURY BILLS 5.73{::} 05/04/00 124,396,952
75,000,000 U.S. TREASURY BILLS 6.06{::} 04/18/00 74,813,750
50,000,000 U.S. TREASURY BILLS 5.70{::} 05/25/00 49,601,334
50,000,000 U.S. TREASURY BILLS 6.01{::} 08/31/00 48,800,000
75,000,000 U.S. TREASURY BILLS 5.58{::} 05/25/00 74,420,959
825,837,549
--------------
TREASURY NOTES - 29.33%
50,000,000 U.S. TREASURY NOTES 5.50 04/15/00 49,992,937
50,000,000 U.S. TREASURY NOTES 5.63 04/30/00 49,997,856
150,000,000 U.S. TREASURY NOTES 6.75 04/30/00 150,095,167
100,000,000 U.S. TREASURY NOTES 6.38 05/15/00 100,068,510
75,000,000 U.S. TREASURY NOTES 6.00 08/15/00 74,951,601
35,000,000 U.S. TREASURY NOTES 4.50 09/30/00 34,692,717
40,000,000 U.S. TREASURY NOTES 6.25 08/31/00 39,995,464
499,794,252
--------------
TOTAL U.S. TREASURY SECURITIES (COST
$1,325,631,801) 1,325,631,801
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,325,631,801)* 77.78% $1,325,631,801
OTHER ASSETS AND LIABILITIES, NET 22.22 378,664,845
------- --------------
TOTAL NET ASSETS 100.00% $1,704,296,646
------- --------------
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $1,325,646,092.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
40
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
PRIME INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
ASSET BACKED SECURITIES - 0.57%
$ 500,000 MOAT FUNDING LLC 6.04% 05/02/00 $ 500,000
215,340 STEERS 1998 SERIES A39 6.18 04/25/00 215,340
559,164 WFP TOWER B FINANCE CORPORATION SHORT-TERM STEERS
TRUST 6.12 07/07/00 559,163
TOTAL ASSET BACKED SECURITIES (COST $1,274,503) 1,274,503
------------
COMMERCIAL PAPER - 69.03%
3,000,000 ACE OVERSEAS CORPORATION 5.90{::} 04/10/00 2,996,558
3,000,000 AEGON FUNDING 5.88{::} 05/17/00 2,978,440
7,000,000 AEGON FUNDING 6.29{::} 10/02/00 6,777,405
6,000,000 APRECO INCORPORATED 5.90{::} 04/19/00 5,984,267
4,000,000 APRECO INCORPORATED 6.15{::} 06/20/00 3,946,700
10,000,000 AQUINAS FUNDING LLC 6.35{::} 04/03/00 10,000,000
3,000,000 ATLANTIS ONE-FUNDING CORPORATION 5.90{::} 05/08/00 2,982,792
10,000,000 BAVARIA UNIVERSAL FUNDING 6.09{::} 04/27/00 9,959,400
6,302,000 BEETHOVEN FUNDING CORPORATION 6.00{::} 04/13/00 6,291,497
7,000,000 BILLS SECURITIZATION LIMITED 6.14{::} 06/26/00 6,899,714
3,000,000 BILLS SECURITIZATION LIMITED 5.93{::} 05/10/00 2,981,716
2,000,000 CC USA INCORPORATED 6.12{::} 09/15/00 1,943,900
3,000,000 CHRISTIANIA BANK 6.22{::} 11/01/00 2,890,114
3,000,000 COMPASS SECURITIZATION 5.91{::} 04/17/00 2,993,105
6,000,000 FALCON ASSET SECURITIZATION CORPORATION 5.90{::} 04/19/00 5,984,267
6,500,000 GRAND FUNDING CORPORATION 6.05{::} 06/19/00 6,415,889
3,000,000 GREYHAWK CAPITAL CORPORATION 5.97{::} 06/19/00 2,961,693
650,000 INTERNATIONAL SECURITIZATION CORPORATION 5.95{::} 04/28/00 647,314
3,000,000 IRISH PERMANENT TREASURY 5.99{::} 07/25/00 2,943,594
500,000 K2 USA LLC 5.91{::} 05/30/00 495,321
10,000,000 K2 USA LLC 6.27{::} 10/02/00 9,683,018
10,000,000 KBC COMMERCIAL PAPER TRUST 6.14{::} 05/23/00 9,914,723
3,000,000 KBC COMMERCIAL PAPER TRUST 5.94{::} 05/04/00 2,984,655
500,000 MOAT FUNDING LLC 5.73{::} 05/09/00 497,135
3,000,000 SPINTAB AB 6.00{::} 07/13/00 2,949,500
10,000,000 SURREY FUNDING 6.12{::} 04/10/00 9,988,100
10,000,000 SVENSKA HANDELSBANKEN 6.26{::} 09/29/00 9,688,740
6,000,000 SYDNEY CAPITAL CORPORATION 5.90{::} 04/17/00 5,986,233
10,000,000 THAMES ASSET GLOBAL SECURITIZATION INCORPORATED 6.15{::} 06/30/00 9,849,667
3,000,000 TRIDENT CAPITAL FINANCE 5.91{::} 05/10/00 2,981,778
TOTAL COMMERCIAL PAPER (COST $153,597,235) 153,597,235
------------
MASTER NOTES - 0.06%
136,664 GENERAL ELECTRIC COMPANY 6.00 04/06/00 136,664
------------
TOTAL MASTER NOTES (COST $136,664) 136,664
------------
TIME DEPOSITS - 8.81%
10,000,000 BARCLAYS BANK 6.34 04/03/00 10,000,000
9,606,517 NATEXIS BANQUE 6.44 04/03/00 9,606,518
TOTAL TIME DEPOSITS (COST $19,606,518) 19,606,518
------------
</TABLE>
41
<PAGE>
MONEY MARKET FUNDS PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000
--------------------------------------------------------------------------------
PRIME INVESTMENT MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
VARIABLE & FLOATING RATE CERTIFICATES OF DEPOSIT - 0.23%
$ 500,000 SOUTH TRUST BANK 6.16% 09/29/00 $ 499,803
------------
TOTAL VARIABLE & FLOATING RATE CERTIFICATES OF DEPOSIT (COST
$499,803) 499,803
------------
VARIABLE & FLOATING RATE FUNDING AGREEMENTS - 0.67%
500,000 ALLSTATE LIFE INSURANCE COMPANY 6.10 06/29/00 500,000
500,000 GE LIFE & ANNUITY 5.91 07/01/00 500,000
500,000 GE LIFE & ANNUITY 5.91 07/01/00 500,000
TOTAL VARIABLE & FLOATING RATE FUNDING AGREEMENTS (COST
$1,500,000) 1,500,000
------------
VARIABLE & FLOATING RATE NOTES -- CORPORATE - 0.90%
500,000 BEAR STEARNS COMPANIES INCORPORATED 6.12 06/16/00 500,029
1,250,000 FIRST UNION NATIONAL BANK 6.16 08/25/00 1,250,000
250,000 GOLDMAN SACHS GROUP INCORPORATED 6.16 07/14/00 250,026
TOTAL VARIABLE & FLOATING RATE NOTES -- CORPORATE (COST
$2,000,055) 2,000,055
------------
REPURCHASE AGREEMENTS -- 28.76%
10,000,000 BANC OF AMERICA SECURITIES REPURCHASE AGREEMENT 6.35 04/03/00 10,000,000
10,000,000 BEAR STEARNS REPURCHASE AGREEMENT 6.20 04/03/00 10,000,000
10,000,000 CREDIT SUISSE FIRST BOSTON REPURCHASE AGREEMENT 6.22 04/03/00 10,000,000
10,000,000 GOLDMAN SACHS REPURCHASE AGREEMENT 6.35 04/03/00 10,000,000
10,000,000 LEHMAN BROTHERS INCORPORATED REPURCHASE AGREEMENT 6.42 04/03/00 10,000,000
9,000,000 LEHMAN BROTHERS INCORPORATED REPURCHASE AGREEMENT 6.20 04/03/00 9,000,000
5,000,000 LEHMAN BROTHERS INCORPORATED REPURCHASE AGREEMENT 6.50 04/03/00 5,000,000
TOTAL REPURCHASE AGREEMENTS (COST $64,000,000) 64,000,000
------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $242,614,778)* 109.03% $242,614,778
OTHER ASSETS AND LIABILITIES, NET (9.03) (20,091,778)
------- ------------
TOTAL NET ASSETS 100.00% $222,523,000
------- ------------
------- ------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS $242,614,862.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
42
<PAGE>
PORTFOLIO OF INVESTMENTS -- MARCH 31, 2000 MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TREASURY PLUS MONEY MARKET FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL SECURITY NAME INTEREST RATE MATURITY DATE VALUE
<C> <S> <C> <C> <C>
U. S. TREASURY SECURITIES- 61.76%
U. S. TREASURY BILLS - 24.18%
$ 30,000,000 U.S. TREASURY BILLS 5.94{::}% 08/31/00 $ 29,279,376
50,000,000 U.S. TREASURY BILLS 6.00{::} 04/20/00 49,858,738
25,000,000 U.S. TREASURY BILLS 5.75{::} 04/27/00 24,905,167
50,000,000 U.S. TREASURY BILLS 5.75{::} 04/27/00 49,810,334
50,000,000 U.S. TREASURY BILLS 5.60{::} 06/08/00 49,498,583
75,000,000 U.S. TREASURY BILLS 5.75{::} 04/27/00 74,715,250
278,067,448
--------------
U.S. TREASURY NOTES - 37.58%
95,730,000 U.S. TREASURY NOTES 5.38 07/31/00 95,588,495
50,000,000 U.S. TREASURY NOTES 5.50 05/31/00 49,984,482
36,690,000 U.S. TREASURY NOTES 5.75 10/31/00 36,708,079
50,000,000 U.S. TREASURY NOTES 5.63 04/30/00 50,005,584
55,000,000 U.S. TREASURY NOTES 6.75 04/30/00 55,043,475
25,000,000 U.S. TREASURY NOTES 6.25 05/31/00 25,022,958
40,000,000 U.S. TREASURY NOTES 5.38 06/30/00 39,953,250
50,000,000 U.S. TREASURY NOTES 6.00 08/15/00 49,976,053
30,000,000 U.S. TREASURY NOTES 5.13 08/31/00 29,945,181
432,227,557
--------------
TOTAL U. S. TREASURY SECURITIES (COST
$710,295,005) 710,295,005
--------------
REPURCHASE AGREEMENTS - 38.08%
230,000,000 BEAR STEARNS REPURCHASE
AGREEMENT 6.10 04/03/00 230,000,000
115,000,000 DEUTSCHE BANK REPURCHASE
AGREEMENT 6.10 04/03/00 115,000,000
35,587,805 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.05 04/03/00 35,587,805
30,000,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.10 04/03/00 30,000,000
2,450,000 GOLDMAN SACHS REPURCHASE
AGREEMENT 6.15 04/03/00 2,450,000
25,000,000 LEHMAN BROTHERS INCORPORATED
REPURCHASE AGREEMENT 6.20 04/03/00 25,000,000
TOTAL REPURCHASE AGREEMENTS (COST
$438,037,805) 438,037,805
--------------
</TABLE>
<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS IN SECURITIES
(COST $1,148,332,810)* 99.84% $1,148,332,810
OTHER ASSETS AND LIABILITIES, NET 0.16 1,848,629
------- --------------
TOTAL NET ASSETS 100.00% $1,150,181,439
------- --------------
------- --------------
</TABLE>
{::} YIELD TO MATURITY.
* COST FOR FEDERAL INCOME TAX PURPOSES IS THE SAME AS FOR FINANCIAL STATEMENT
PURPOSES.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
43
<PAGE>
MONEY MARKET FUNDS
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE CASH INVESTMENT
MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C>
------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED
COST...................... $2,524,934,435 $11,179,190,100
CASH.......................... 1,522,306 9,677,792
RECEIVABLE FOR INTEREST AND
OTHER RECEIVABLES........... 22,448,772 42,932,283
RECEIVABLE FOR FUND SHARES
ISSUED...................... 0 0
PREPAID EXPENSES AND OTHER
ASSETS...................... 0 217,027
------------- --------------
TOTAL ASSETS.................. 2,548,905,513 11,232,017,202
------------- --------------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 1,305,465 4,331,109
PAYABLE TO OTHER RELATED
PARTIES................... 921,117 359,891
PAYABLE TO CUSTODIAN........ 0 0
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 286,080 1,318,728
DIVIDENDS PAYABLE........... 5,805,443 26,942,712
------------- --------------
TOTAL LIABILITIES............. 8,318,105 32,952,440
------------- --------------
TOTAL NET ASSETS.............. $2,540,587,408 $11,199,064,762
------------- --------------
------------- --------------
NET ASSETS CONSIST OF:
------------------------------------------------------------------------
PAID-IN CAPITAL............. $2,541,251,553 $11,199,025,910
UNDISTRIBUTED NET INVESTMENT
INCOME.................... 0 0
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON
INVESTMENTS............... (664,145) 38,852
------------- --------------
TOTAL NET ASSETS.............. $2,540,587,408 $11,199,064,762
------------- --------------
------------- --------------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $2,464,890,444 N/A
SHARES OUTSTANDING -
CLASS A..................... 2,465,559,308 N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS A..................... $ 1.00 N/A
NET ASSETS - CLASS B.......... N/A N/A
SHARES OUTSTANDING -
CLASS B..................... N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A N/A
NET ASSETS - CLASS INST....... N/A $2,116,276,392(1)
SHARES OUTSTANDING -
CLASS INST.................. N/A 2,116,347,674(1)
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS INST.................. N/A $ 1.00(1)
NET ASSETS - SERVICE CLASS.... $ 75,696,964(1) $9,082,788,370
SHARES OUTSTANDING - SERVICE
CLASS....................... 75,697,214(1) 9,084,563,463
NET ASSET VALUE AND OFFERING
PRICE PER SHARE - SERVICE
CLASS....................... $ 1.00(1) $ 1.00
------------- --------------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
44
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES -- MARCH 31, 2000
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE
GOVERNMENT INSTITUTIONAL MONEY 100% TREASURY PRIME INVESTMENT
MONEY MARKET FUND MARKET FUND MONEY MARKET FUND MONEY MARKET FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED
COST...................... $3,527,583,897 $1,121,490,559 $1,325,631,801 $242,614,778
CASH.......................... 0 159,782 1,133 0
RECEIVABLE FOR INTEREST AND
OTHER RECEIVABLES........... 12,056,298 9,254,915 10,083,156 85,351
RECEIVABLE FOR FUND SHARES
ISSUED...................... 0 27,853,143 376,046,414 0
PREPAID EXPENSES AND OTHER
ASSETS...................... 206,396 41,642 20 0
------------- ------------- ------------- -----------
TOTAL ASSETS.................. 3,539,846,591 1,158,800,041 1,711,762,524 242,700,129
------------- ------------- ------------- -----------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 29,999,700 8,000,000 0 9,914,722
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 1,428,706 402,586 667,658 56,772
PAYABLE TO OTHER RELATED
PARTIES................... 310,943 54,075 23,665 18,498
PAYABLE TO CUSTODIAN........ 0 0 0 9,677,792
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 346,987 219,784 185,221 27,117
DIVIDENDS PAYABLE........... 14,844,550 2,909,017 6,589,334 482,228
------------- ------------- ------------- -----------
TOTAL LIABILITIES............. 46,930,886 11,585,462 7,465,878 20,177,129
------------- ------------- ------------- -----------
TOTAL NET ASSETS.............. $3,492,915,705 $1,147,214,579 $1,704,296,646 $222,523,000
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
NET ASSETS CONSIST OF:
------------------------------------------------------------------------------------------------------------------
PAID-IN CAPITAL............. $3,493,101,342 $1,147,262,224 $1,705,308,048 $222,528,285
UNDISTRIBUTED NET INVESTMENT
INCOME.................... 0 0 168,885 4
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON
INVESTMENTS............... (185,637) (47,645) (1,180,287) (5,289)
------------- ------------- ------------- -----------
TOTAL NET ASSETS.............. $3,492,915,705 $1,147,214,579 $1,704,296,646 $222,523,000
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
------------------------------------------------------------------------------------------------------------------
NET ASSETS - CLASS A.......... $ 58,960,115(1) N/A $ 2,046,604(1) N/A
SHARES OUTSTANDING -
CLASS A..................... 58,964,516(1) N/A 2,046,604(1) N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS A..................... $ 1.00(1) N/A $ 1.00(1) N/A
NET ASSETS - CLASS B.......... N/A N/A N/A N/A
SHARES OUTSTANDING -
CLASS B..................... N/A N/A N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A N/A N/A N/A
NET ASSETS - CLASS INST....... N/A $ 23,141,486(1) N/A N/A
SHARES OUTSTANDING -
CLASS INST.................. N/A 23,141,486(1) N/A N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS INST.................. N/A $ 1.00(1) N/A N/A
NET ASSETS - SERVICE CLASS.... $3,433,955,590 $1,124,073,093 $1,702,250,042 $222,523,000
SHARES OUTSTANDING - SERVICE
CLASS....................... 3,434,315,433 1,124,005,822 1,703,260,160 222,529,148
NET ASSET VALUE AND OFFERING
PRICE PER SHARE - SERVICE
CLASS....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------- ------------- ------------- -----------
<CAPTION>
TREASURY PLUS
INSTITUTIONAL MONEY
MARKET FUND
<S> <C>
------------------------------
ASSETS
INVESTMENTS:
IN SECURITIES AT AMORTIZED
COST...................... $856,172,448
CASH.......................... 606
RECEIVABLE FOR INTEREST AND
OTHER RECEIVABLES........... 5,868,104
RECEIVABLE FOR FUND SHARES
ISSUED...................... 0
PREPAID EXPENSES AND OTHER
ASSETS...................... 2,850
-----------
TOTAL ASSETS.................. 862,044,008
-----------
LIABILITIES
PAYABLE FOR INVESTMENTS
PURCHASED................. 0
PAYABLE TO INVESTMENT
ADVISOR AND AFFILIATES.... 305,211
PAYABLE TO OTHER RELATED
PARTIES................... 6,516
PAYABLE TO CUSTODIAN........ 0
ACCRUED EXPENSES AND OTHER
LIABILITIES............... 532,737
DIVIDENDS PAYABLE........... 2,457,061
-----------
TOTAL LIABILITIES............. 3,301,525
-----------
TOTAL NET ASSETS.............. $858,742,483
-----------
-----------
NET ASSETS CONSIST OF:
------------------------------
PAID-IN CAPITAL............. $858,761,691
UNDISTRIBUTED NET INVESTMENT
INCOME.................... 0
UNDISTRIBUTED NET REALIZED
GAIN (LOSS) ON
INVESTMENTS............... (19,208)
-----------
TOTAL NET ASSETS.............. $858,742,483
-----------
-----------
COMPUTATION OF NET ASSET VALUE
------------------------------
NET ASSETS - CLASS A.......... N/A
SHARES OUTSTANDING -
CLASS A..................... N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS A..................... N/A
NET ASSETS - CLASS B.......... N/A
SHARES OUTSTANDING -
CLASS B..................... N/A
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS B..................... N/A
NET ASSETS - CLASS INST....... $390,592,178
SHARES OUTSTANDING -
CLASS INST.................. 390,592,178
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -
CLASS INST.................. $ 1.00
NET ASSETS - SERVICE CLASS.... $468,150,305
SHARES OUTSTANDING - SERVICE
CLASS....................... 468,319,129
NET ASSET VALUE AND OFFERING
PRICE PER SHARE - SERVICE
CLASS....................... $ 1.00
-----------
</TABLE>
(1) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
45
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA
TAX-FREE MONEY CASH INVESTMENT MONEY
MARKET FUND MARKET FUND
--------------- ------------------------------
FOR THE
FOR THE TEN MONTHS FOR THE
YEAR ENDED ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 2000 MAY 31, 1999
<S> <C> <C> <C>
--------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 75,215,719 $ 393,241,066 $298,826,756
NET EXPENSES ALLOCATED
FROM AFFILIATED
PORTFOLIOS(1)........ 0 (6,497,825) (14,206,212)
-------------- -------------- ------------
TOTAL INVESTMENT
INCOME................. 75,215,719 386,743,241 284,620,544
-------------- -------------- ------------
EXPENSES
ADVISORY FEES.......... 10,018,980 4,304,172 0
ADMINISTRATION FEES.... 3,611,053 7,733,094 2,770,004
CUSTODY................ 446,613 860,834 0
SHAREHOLDER SERVICING
FEES................. 6,663,703 8,782,975 0
PORTFOLIO ACCOUNTING
FEES................. 384,177 190,312 13,000
TRANSFER AGENT
A SHARES............. 1,238,432 N/A N/A
I SHARES............. N/A 15,820(2) N/A
SERVICE CLASS........ 1,878(2) 5,283,002 11,080,019
LEGAL AND AUDIT FEES... 177,819 122,046 77,893
REGISTRATION FEES...... 99,277 602,279 333,566
DIRECTORS' FEES........ 2,731 30,496 63,742
SHAREHOLDER REPORTS.... 147,397 357,732 312,978
OTHER.................. 89,481 129,549 90,497
-------------- -------------- ------------
TOTAL EXPENSES........... 22,881,541 28,412,311 14,741,699
-------------- -------------- ------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (7,309,075) (3,790,119) (2,349,109)
NET EXPENSES........... 15,572,466 24,622,192 12,392,590
-------------- -------------- ------------
NET INVESTMENT INCOME.... 59,643,253 362,121,049 272,227,954
-------------- -------------- ------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... (372,792) 75,110 54,777
-------------- -------------- ------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 59,270,461 $ 362,196,159 $272,282,731
-------------- -------------- ------------
-------------- -------------- ------------
</TABLE>
(1) THE CORE PORTFOLIOS ASSOCIATED WITH THE CASH INVESTMENT AND PRIME
INVESTMENT MONEY MARKET FUNDS CEASED OPERATIONS AT THE CLOSE OF BUSINESS
NOVEMBER 5, 1999. SEE SEPARATE PRESENTATION OF THE FINANCIAL STATEMENTS FOR
THE CORE PORTFOLIOS FOR THE PERIODS PRIOR TO NOVEMBER 5, 1999 BEGINNING AT
PAGE 68.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
46
<PAGE>
STATEMENTS OF OPERATIONS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE INSTITUTIONAL
GOVERNMENT MONEY MARKET FUND MONEY MARKET FUND 100% TREASURY MONEY MARKET FUND
------------------------------ -------------------------------- --------------------------------
FOR THE FOR THE FOR THE
TEN MONTHS FOR THE TEN MONTHS FOR THE TEN MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MARCH 31, 2000 MAY 31, 1999 MARCH 31, 2000 MAY 31, 1999 MARCH 31, 2000 MAY 31, 1999
<S> <C> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST............... $ 155,646,185 $148,270,463 $ 32,545,886 $ 39,625,210 $ 73,431,480 $ 77,059,458
NET EXPENSES ALLOCATED
FROM AFFILIATED
PORTFOLIOS(1)........ 0 0 0 0 0 0
-------------- ------------ -------------- ------------ -------------- ------------
TOTAL INVESTMENT
INCOME................. 155,646,185 148,270,463 32,545,886 39,625,210 73,431,480 77,059,458
-------------- ------------ -------------- ------------ -------------- ------------
EXPENSES
ADVISORY FEES.......... 6,926,086 3,827,097 2,046,650 3,911,866 3,550,434 2,328,016
ADMINISTRATION FEES.... 3,580,993 2,855,914 1,169,349 1,221,486 1,791,913 1,606,680
CUSTODY................ 436,835 300,591 144,103 132,896 221,786 175,668
SHAREHOLDER SERVICING
FEES................. 59,314 0 1,099,922 0 951 0
PORTFOLIO ACCOUNTING
FEES................. 112,780 64,750 86,740 97,750 82,385 61,750
TRANSFER AGENT
A SHARES............. 2,373(2) N/A 45,639 106,325 114(2) N/A
I SHARES............. N/A N/A 263(2) N/A N/A N/A
SERVICE CLASS........ 3,823,142 7,139,786 508,136 1,136,425 1,812,990 4,016,700
LEGAL AND AUDIT FEES... 56,005 56,163 26,469 32,150 19,730 36,345
REGISTRATION FEES...... 165,842 301,672 103,419 64,062 28,663 61,086
DIRECTORS' FEES........ 18,396 32,082 7,487 13,813 8,002 19,040
SHAREHOLDER REPORTS.... 149,407 164,904 31,481 67,636 32,077 90,650
OTHER.................. 59,288 69,402 49,861 75,772 154,276 45,529
-------------- ------------ -------------- ------------ -------------- ------------
TOTAL EXPENSES........... 15,390,461 14,812,361 5,319,519 6,860,181 7,703,321 8,441,464
-------------- ------------ -------------- ------------ -------------- ------------
LESS:
WAIVED FEES AND
REIMBURSED
EXPENSES............. (1,030,495) (532,406) (1,124,246) (1,469,730) (1,115,606) (1,050,582)
NET EXPENSES........... 14,359,966 14,279,955 4,195,273 5,390,451 6,587,715 7,390,882
-------------- ------------ -------------- ------------ -------------- ------------
NET INVESTMENT INCOME.... 141,286,219 133,990,508 28,350,613 34,234,759 66,843,765 69,668,576
-------------- ------------ -------------- ------------ -------------- ------------
NET REALIZED GAIN
(LOSS) FROM
INVESTMENTS.......... (184,488) 204,634 68,766 6,112 (856,341) 101,345
-------------- ------------ -------------- ------------ -------------- ------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS............. $ 141,101,731 $134,195,142 $ 28,419,379 $ 34,240,871 $ 65,987,424 $ 69,769,921
-------------- ------------ -------------- ------------ -------------- ------------
-------------- ------------ -------------- ------------ -------------- ------------
</TABLE>
(1) THE CORE PORTFOLIOS ASSOCIATED WITH THE CASH INVESTMENT AND PRIME
INVESTMENT MONEY MARKET FUNDS CEASED OPERATIONS AT THE CLOSE OF BUSINESS
NOVEMBER 5, 1999. SEE SEPARATE PRESENTATION OF THE FINANCIAL STATEMENTS FOR
THE CORE PORTFOLIOS FOR THE PERIODS PRIOR TO NOVEMBER 5, 1999 BEGINNING AT
PAGE 68.
(2) THIS CLASS OF SHARES COMMENCED OPERATIONS ON NOVEMBER 8, 1999.
47
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TREASURY PLUS
PRIME INVESTMENT MONEY INSTITUTIONAL MONEY
MARKET FUND MARKET FUND
------------------------------ -------------------
FOR THE
TEN MONTHS FOR THE FOR THE
ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 MAY 31, 1999 MARCH 31, 2000
<S> <C> <C> <C>
----------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST......................... $ 26,405,605 $ 47,740,983 $ 90,909,028
NET EXPENSES ALLOCATED FROM
AFFILIATED PORTFOLIOS(1)....... (1,802,541) (3,524,091) 0
-------------- ------------ -------------------
TOTAL INVESTMENT INCOME............ 24,603,064 44,216,892 90,909,028
-------------- ------------ -------------------
EXPENSES
ADVISORY FEES.................... 35,715 0 3,944,829
ADMINISTRATION FEES.............. 738,872 1,332,118 2,720,573
CUSTODY.......................... 7,143 0 316,731
SHAREHOLDER SERVICING FEES....... 89,287 0 3,181,836
PORTFOLIO ACCOUNTING FEES........ 50,343 34,000 357,246
TRANSFER AGENT
A SHARES....................... 1,100,916 2,135,620 184,350
ADMINISTRATIVE SHARES.......... N/A N/A 177,972
B SHARES/CLASS E............... 0 2,726 0
I SHARES....................... N/A N/A 52,984
SERVICE CLASS.................. 3,571 32,740 168,714
DISTRIBUTION FEES
A SHARES....................... 5,091 0 N/A
B SHARES/EXCHANGE
SHARES/CLASS E............... N/A 10,904 N/A
LEGAL AND AUDIT FEES............. 15,155 17,460 150,166
REGISTRATION FEES................ 44,144 147,085 168,311
DIRECTORS' FEES.................. 7,867 10,058 4,082
SHAREHOLDER REPORTS.............. 89,778 48,953 148,198
OTHER............................ 52,058 15,036 90,593
-------------- ------------ -------------------
TOTAL EXPENSES..................... 2,239,940 3,786,700 11,666,585
-------------- ------------ -------------------
LESS:
WAIVED FEES AND REIMBURSED
EXPENSES....................... (241,091) (110,672) (3,315,845)
NET EXPENSES..................... 1,998,849 3,676,028 8,350,740
-------------- ------------ -------------------
NET INVESTMENT INCOME.............. 22,604,215 40,540,864 82,558,288
-------------- ------------ -------------------
NET REALIZED GAIN (LOSS) FROM
INVESTMENTS.................... (24,393) 8,287 (29,640)
-------------- ------------ -------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ $ 22,579,822 $ 40,549,151 $ 82,528,648
-------------- ------------ -------------------
-------------- ------------ -------------------
</TABLE>
(1) THE CORE PORTFOLIOS ASSOCIATED WITH THE CASH INVESTMENT AND PRIME
INVESTMENT MONEY MARKET FUNDS CEASED OPERATIONS AT THE CLOSE OF BUSINESS
NOVEMBER 5, 1999. SEE SEPARATE PRESENTATION OF THE FINANCIAL STATEMENTS FOR
THE CORE PORTFOLIOS FOR THE PERIODS PRIOR TO NOVEMBER 5, 1999 BEGINNING AT
PAGE 68.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
48
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
49
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CALIFORNIA TAX-FREE
MONEY MARKET FUND
--------------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS............................................................ $2,246,122,877 $ 2,118,881,359
OPERATIONS:
NET INVESTMENT INCOME (LOSS).................................................... 59,643,253 52,641,127
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS................................. (372,792) (121,194)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................. 59,270,461 52,519,933
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES.................................................................... (59,135,379) (52,641,127)
ADMINISTRATIVE SHARES....................................................... N/A N/A
B SHARES/CLASS E............................................................ N/A N/A
I SHARES.................................................................... N/A N/A
SERVICE CLASS............................................................... (507,874)(1) N/A
NET REALIZED GAIN ON SALE OF INVESTMENTS
A SHARES.................................................................... 0 0
ADMINISTRATIVE SHARES....................................................... N/A N/A
B SHARES/CLASS E............................................................ N/A N/A
I SHARES.................................................................... N/A N/A
SERVICE CLASS............................................................... 0(1) N/A
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A........................................... 3,663,360,428 3,191,791,394
REINVESTMENT OF DIVIDENDS - CLASS A........................................... 50,547,941 45,918,774
COST OF SHARES REDEEMED - CLASS A............................................. (3,494,768,260) (3,110,347,456)
-------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS A..................................................................... 219,140,109 127,362,712
-------------- -----------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATIVE CLASS................................ N/A N/A
REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE CLASS................................ N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATIVE CLASS.................................. N/A N/A
-------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- ADMINISTRATIVE CLASS........................................................ N/A N/A
-------------- -----------------
PROCEEDS FROM SHARES SOLD - CLASS B/CLASS E..................................... N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E..................................... N/A N/A
COST OF SHARES REDEEMED - CLASS B/CLASS E....................................... N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS B/CLASS E............................................................. N/A N/A
PROCEEDS FROM SHARES SOLD - CLASS I............................................. N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS I............................................. N/A N/A
COST OF SHARES REDEEMED - CLASS I............................................... N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- CLASS I..................................................................... N/A N/A
PROCEEDS FROM SHARES SOLD - SERVICE CLASS....................................... 102,151,332(1) N/A
REINVESTMENT OF DIVIDENDS - SERVICE CLASS....................................... 310,610(1) N/A
COST OF SHARES REDEEMED - SERVICE CLASS......................................... (26,764,728)(1) N/A
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS
- SERVICE CLASS............................................................... 75,697,214(1) N/A
NET INCREASE (DECREASE) IN NET ASSETS........................................... 294,464,531 127,241,518
-------------- -----------------
NET ASSETS:
------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS............................................................. $2,540,587,408 $ 2,246,122,877
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A......................................................... 3,663,360,394 3,191,791,394
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS A.......................... 50,547,946 45,918,774
SHARES REDEEMED - CLASS A..................................................... (3,494,768,069) (3,110,347,456)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS A......................... 219,140,271 127,362,712
SHARES SOLD - ADMINISTRATIVE CLASS............................................ N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE CLASS............. N/A N/A
SHARES REDEEMED - ADMINISTRATIVE CLASS........................................ N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - ADMINISTRATIVE CLASS............ N/A N/A
SHARES SOLD - CLASS B/CLASS E................................................. N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E.................. N/A N/A
SHARES REDEEMED - CLASS B/CLASS E............................................. N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS B/CLASS E................. N/A N/A
SHARES SOLD - CLASS I......................................................... N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - CLASS I.......................... N/A N/A
SHARES REDEEMED - CLASS I..................................................... N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - CLASS I......................... N/A N/A
SHARES SOLD - SERVICE CLASS................................................... 102,151,332(1) N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - SERVICE CLASS.................... 310,610(1) N/A
SHARES REDEEMED - SERVICE CLASS............................................... (26,764,728)(1) N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - SERVICE CLASS................... 75,697,214(1) N/A
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT INCOME........................... $ 0 $ 0
-------------- -----------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
50
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH INVESTMENT MONEY MARKET FUND
----------------------------------------------------------------------
FOR THE TEN FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000(2) MAY 31, 1999 MAY 31, 1998
<S> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.................... $ 5,481,802,324 $ 4,685,818,157 $ 2,147,893,640
OPERATIONS:
NET INVESTMENT INCOME (LOSS)............ 362,121,049 272,227,954 203,656,282
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS........................... 75,110 54,777 (53,352)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 362,196,159 272,282,731 203,602,930
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............................ N/A N/A N/A
ADMINISTRATIVE SHARES............... N/A N/A N/A
B SHARES/CLASS E.................... N/A N/A N/A
I SHARES............................ (45,514,130)(1) N/A N/A
SERVICE CLASS....................... (316,651,938) (272,182,936) (203,656,282)
NET REALIZED GAIN ON SALE OF
INVESTMENTS
A SHARES............................ N/A N/A N/A
ADMINISTRATIVE SHARES............... N/A N/A N/A
B SHARES/CLASS E.................... N/A N/A N/A
I SHARES............................ 0(1) N/A N/A
SERVICE CLASS....................... 0 0 0
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD -
CLASS A............................. N/A N/A N/A
REINVESTMENT OF DIVIDENDS -
CLASS A............................. N/A N/A N/A
COST OF SHARES REDEEMED - CLASS A..... N/A N/A N/A
---------------------- ---------------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A................ N/A N/A N/A
---------------------- ---------------------- -----------------
PROCEEDS FROM SHARES SOLD -
ADMINISTRATIVE CLASS.................. N/A N/A N/A
REINVESTMENT OF DIVIDENDS -
ADMINISTRATIVE CLASS.................. N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATIVE
CLASS................................. N/A N/A N/A
---------------------- ---------------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS... N/A N/A N/A
---------------------- ---------------------- -----------------
PROCEEDS FROM SHARES SOLD -
CLASS B/CLASS E....................... N/A N/A N/A
REINVESTMENT OF DIVIDENDS -
CLASS B/CLASS E....................... N/A N/A N/A
COST OF SHARES REDEEMED -
CLASS B/CLASS E....................... N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/CLASS E........ N/A N/A N/A
PROCEEDS FROM SHARES SOLD - CLASS I..... 33,083,720,843(1) N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS I..... 14,071,650(1) N/A N/A
COST OF SHARES REDEEMED - CLASS I....... (30,981,523,473)(1) N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS I................ 2,116,269,020(1) N/A N/A
PROCEEDS FROM SHARES SOLD - SERVICE
CLASS................................. 30,580,541,901 37,587,082,649 12,012,845,493
REINVESTMENT OF DIVIDENDS - SERVICE
CLASS................................. 159,859,110 143,723,803 114,097,582
COST OF SHARES REDEEMED - SERVICE
CLASS................................. (27,139,437,684) (36,934,922,080) (9,588,965,206)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SERVICE CLASS.......... 3,600,963,327 795,884,372 2,537,977,869
NET INCREASE (DECREASE) IN NET ASSETS... 5,717,262,438 795,984,167 2,537,924,517
---------------------- ---------------------- -----------------
NET ASSETS:
----------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS..................... $ 11,199,064,762 $ 5,481,802,324 $ 4,685,818,157
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS A................. N/A N/A N/A
SHARES REDEEMED - CLASS A............. N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A................. N/A N/A N/A
SHARES SOLD - ADMINISTRATIVE CLASS.... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - ADMINISTRATIVE CLASS.... N/A N/A N/A
SHARES REDEEMED - ADMINISTRATIVE
CLASS............................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - ADMINISTRATIVE CLASS.... N/A N/A N/A
SHARES SOLD - CLASS B/CLASS E......... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS B/CLASS E......... N/A N/A N/A
SHARES REDEEMED - CLASS B/CLASS E..... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B/CLASS E......... N/A N/A N/A
SHARES SOLD - CLASS I................. 33,083,799,497(1) N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS I................. 14,071,650(1) N/A N/A
SHARES REDEEMED - CLASS I............. (30,981,523,473)(1) N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS I................. 2,116,347,674(1) N/A N/A
SHARES SOLD - SERVICE CLASS........... 30,580,541,901 37,587,082,649 12,012,845,493
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - SERVICE CLASS........... 159,925,207 143,723,803 114,097,582
SHARES REDEEMED - SERVICE CLASS....... (27,139,437,684) (36,934,922,080) (9,588,965,206)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - SERVICE CLASS........... 3,601,029,424 795,884,372 2,537,977,869
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT INCOME..................... $ 0 $ (102,315) $ (147,521)
---------------------- ---------------------- -----------------
<CAPTION>
GOVERNMENT MONEY MARKET FUND
--------------------------------------------------------------------
FOR THE TEN FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000(5) MAY 31, 1999 MAY 31, 1998
<S> <C> <C> <C>
----------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS.................... $ 3,368,533,822 $ 2,260,207,846 $ 1,912,574,006
OPERATIONS:
NET INVESTMENT INCOME (LOSS)............ 141,286,219 133,990,508 114,966,133
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS........................... (184,488) 204,634 (48,377)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. 141,101,731 134,195,142 114,917,756
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES............................ (1,181,705)(1) N/A N/A
ADMINISTRATIVE SHARES............... N/A N/A N/A
B SHARES/CLASS E.................... N/A N/A N/A
I SHARES............................ N/A N/A N/A
SERVICE CLASS....................... (140,104,514) (133,990,508) (114,966,133)
NET REALIZED GAIN ON SALE OF
INVESTMENTS
A SHARES............................ 0(1) N/A N/A
ADMINISTRATIVE SHARES............... N/A N/A N/A
B SHARES/CLASS E.................... N/A N/A N/A
I SHARES............................ N/A N/A N/A
SERVICE CLASS....................... 0 0 0
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD -
CLASS A............................. 139,610,265(1) N/A N/A
REINVESTMENT OF DIVIDENDS -
CLASS A............................. 494,841(1) N/A N/A
COST OF SHARES REDEEMED - CLASS A..... (81,141,804)(1) N/A N/A
--------------------- ---------------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS A................ 58,963,302(1) N/A N/A
--------------------- ---------------------- ----------------
PROCEEDS FROM SHARES SOLD -
ADMINISTRATIVE CLASS.................. N/A N/A N/A
REINVESTMENT OF DIVIDENDS -
ADMINISTRATIVE CLASS.................. N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATIVE
CLASS................................. N/A N/A N/A
--------------------- ---------------------- ----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - ADMINISTRATIVE CLASS... N/A N/A N/A
--------------------- ---------------------- ----------------
PROCEEDS FROM SHARES SOLD -
CLASS B/CLASS E....................... N/A N/A N/A
REINVESTMENT OF DIVIDENDS -
CLASS B/CLASS E....................... N/A N/A N/A
COST OF SHARES REDEEMED -
CLASS B/CLASS E....................... N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS B/CLASS E........ N/A N/A N/A
PROCEEDS FROM SHARES SOLD - CLASS I..... N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS I..... N/A N/A N/A
COST OF SHARES REDEEMED - CLASS I....... N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - CLASS I................ N/A N/A N/A
PROCEEDS FROM SHARES SOLD - SERVICE
CLASS................................. 31,097,729,447 26,091,666,224 8,855,872,101
REINVESTMENT OF DIVIDENDS - SERVICE
CLASS................................. 5,327,578 29,201,156 18,495,730
COST OF SHARES REDEEMED - SERVICE
CLASS................................. (31,037,453,956) (25,012,746,038) (8,526,685,614)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM CAPITAL SHARE
TRANSACTIONS - SERVICE CLASS.......... 65,603,069 1,108,121,342 347,682,217
NET INCREASE (DECREASE) IN NET ASSETS... 124,381,883 $ 1,108,325,976 $ 347,633,840
--------------------- ---------------------- ----------------
NET ASSETS:
----------------------------------------
ENDING NET ASSETS..................... $ 3,492,915,705 $ 3,368,533,822 $ 2,260,207,846
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A................. 139,611,479(1) N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS A................. 494,841(1) N/A N/A
SHARES REDEEMED - CLASS A............. (81,141,804)(1) N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A................. 58,964,516(1) N/A N/A
SHARES SOLD - ADMINISTRATIVE CLASS.... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - ADMINISTRATIVE CLASS.... N/A N/A N/A
SHARES REDEEMED - ADMINISTRATIVE
CLASS............................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - ADMINISTRATIVE CLASS.... N/A N/A N/A
SHARES SOLD - CLASS B/CLASS E......... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS B/CLASS E......... N/A N/A N/A
SHARES REDEEMED - CLASS B/CLASS E..... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS B/CLASS E......... N/A N/A N/A
SHARES SOLD - CLASS I................. N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS I................. N/A N/A N/A
SHARES REDEEMED - CLASS I............. N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS I................. N/A N/A N/A
SHARES SOLD - SERVICE CLASS........... 31,097,729,447 26,091,666,224 8,855,872,101
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - SERVICE CLASS........... 5,327,578 29,201,156 18,495,730
SHARES REDEEMED - SERVICE CLASS....... (31,037,453,956) (25,012,746,038) (8,526,685,614)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - SERVICE CLASS........... 65,603,069 1,108,121,342 347,682,217
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT INCOME..................... $ 0 $ (56,270) $ (56,270)
--------------------- ---------------------- ----------------
</TABLE>
51
<PAGE>
MONEY MARKET FUNDS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
----------------------------------------------------------------------
FOR THE TEN FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000(3) MAY 31, 1999 MAY 31, 1998
<S> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS................................... $ 1,060,762,128 $ 1,021,763,286 $ 690,270,611
OPERATIONS:
NET INVESTMENT INCOME (LOSS)........................... 28,350,613 34,234,759 28,902,887
NET REALIZED GAIN (LOSS) ON SALE OF INVESTMENTS........ 68,766 6,112 172,328
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................... 28,419,379 34,240,871 29,075,215
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES........................................... (485,964)(4) (1,157,118) (1,571,100)
ADMINISTRATIVE SHARES.............................. N/A N/A N/A
B SHARES/CLASS E................................... N/A N/A N/A
I SHARES........................................... (299,922)(1) N/A N/A
SERVICE CLASS...................................... (27,564,727) (33,067,705) (27,331,787)
NET REALIZED GAIN ON SALE OF INVESTMENTS
A SHARES........................................... 0(4) (628) (3,249)
ADMINISTRATIVE SHARES.............................. N/A N/A N/A
B SHARES/CLASS E................................... N/A N/A N/A
I SHARES........................................... 0(1) N/A N/A
SERVICE CLASS...................................... 0 (16,474) (58,183)
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD - CLASS A.................. 16,850,329(4) 51,468,576 81,294,057
REINVESTMENT OF DIVIDENDS - CLASS A.................. 471,208(4) 1,155,538 1,574,299
COST OF SHARES REDEEMED - CLASS A.................... (58,499,543)(4) (55,521,236) (93,421,410)
-------------------- ------------------- -------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS A................. (41,178,006)(4) (2,897,122) (10,553,054)
-------------------- ------------------- -------------------
PROCEEDS FROM SHARES SOLD - ADMINISTRATIVE CLASS....... N/A N/A N/A
REINVESTMENT OF DIVIDENDS - ADMINISTRATIVE CLASS....... N/A N/A N/A
COST OF SHARES REDEEMED - ADMINISTRATIVE CLASS......... N/A N/A N/A
-------------------- ------------------- -------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - ADMINISTRATIVE CLASS.... N/A N/A N/A
-------------------- ------------------- -------------------
PROCEEDS FROM SHARES SOLD - CLASS B/CLASS E............ N/A N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS B/CLASS E............ N/A N/A N/A
COST OF SHARES REDEEMED - CLASS B/CLASS E.............. N/A N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS B/CLASS E......... N/A N/A N/A
PROCEEDS FROM SHARES SOLD - CLASS I.................... 385,671,594(1) N/A N/A
REINVESTMENT OF DIVIDENDS - CLASS I.................... 70,018(1) N/A N/A
COST OF SHARES REDEEMED - CLASS I...................... (362,606,896)(1) N/A N/A
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - CLASS I................. 23,134,716(1) N/A N/A
PROCEEDS FROM SHARES SOLD - SERVICE CLASS.............. 2,015,467,599 4,895,924,473 2,529,846,649
REINVESTMENT OF DIVIDENDS - SERVICE CLASS.............. 1,611,072 8,171,310 4,917,786
COST OF SHARES REDEEMED - SERVICE CLASS................ (1,912,651,696) (4,862,198,765) (2,192,829,602)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
CAPITAL SHARE TRANSACTIONS - SERVICE CLASS........... 104,426,975 41,897,018 341,934,833
NET INCREASE (DECREASE) IN NET ASSETS.................. 86,452,451 38,998,842 331,492,675
-------------------- ------------------- -------------------
NET ASSETS:
-------------------------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS.................................... $ 1,147,214,579 $ 1,060,762,128 $ 1,021,763,286
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A................................ 16,850,329(4) 51,468,576 81,294,057
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS A............................................ 471,208(4) 1,155,538 1,574,299
SHARES REDEEMED - CLASS A............................ (58,502,479)(4) (55,521,236) (93,421,410)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS A.............................................. (41,180,942)(4) (2,897,122) (10,553,054)
SHARES SOLD - ADMINISTRATIVE CLASS................... N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
ADMINISTRATIVE CLASS............................... N/A N/A N/A
SHARES REDEEMED - ADMINISTRATIVE CLASS............... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
ADMINISTRATIVE CLASS................................. N/A N/A N/A
SHARES SOLD - CLASS B/CLASS E........................ N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS B/CLASS E.................................... N/A N/A N/A
SHARES REDEEMED - CLASS B/CLASS E.................... N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS B/CLASS E...................................... N/A N/A N/A
SHARES SOLD - CLASS I................................ 385,678,364(1) N/A N/A
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS -
CLASS I............................................ 70,018(1) N/A N/A
SHARES REDEEMED - CLASS I............................ (362,606,896)(1) N/A N/A
NET INCREASE (DECREASE) IN SHARES OUTSTANDING -
CLASS I.............................................. 23,141,486(1) N/A N/A
SHARES SOLD - SERVICE CLASS.......................... 2,015,467,599 4,895,924,473 2,529,846,649
SHARES ISSUED IN REINVESTMENT OF DIVIDENDS - SERVICE
CLASS.............................................. 1,611,072 8,171,310 4,917,786
SHARES REDEEMED - SERVICE CLASS...................... (1,912,651,696) (4,862,198,765) (2,192,829,602)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING - SERVICE
CLASS................................................ 104,426,975 41,897,018 341,934,833
ENDING BALANCE OF UNDISTRIBUTED NET INVESTMENT
INCOME............................................... $ 0 $ (126,904) $ (198,272)
-------------------- ------------------- -------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
52
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
100% TREASURY MONEY MARKET FUND PRIME INVESTMENT MONEY MARKET FUND
---------------------------------------------------------- ----------------
FOR THE TEN FOR THE FOR THE FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED
MARCH 31, 2000 MAY 31, 1999 MAY 31, 1998 MARCH 31, 2000
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS............... $ 1,548,548,589 $ 1,440,515,062 $ 1,003,696,510 $ 1,023,150,843
OPERATIONS:
NET INVESTMENT INCOME (LOSS)....... 66,843,765 69,668,576 58,492,565 22,604,215
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS...................... (856,341) 101,345 358,352 (24,393)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... 65,987,424 69,769,921 58,850,917 22,579,822
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES....................... (18,741)(1) N/A N/A (19,342,134)(6)
ADMINISTRATIVE SHARES.......... N/A N/A N/A N/A
B SHARES/CLASS E............... N/A N/A N/A (25,721)(6)
I SHARES....................... N/A N/A N/A N/A
SERVICE CLASS.................. (66,825,024) (69,668,576) (58,492,565) (3,251,066)
NET REALIZED GAIN ON SALE OF
INVESTMENTS
A SHARES....................... 0(1) N/A N/A 0(6)
ADMINISTRATIVE SHARES.......... N/A N/A N/A N/A
B SHARES/CLASS E............... N/A N/A N/A 0(6)
I SHARES....................... N/A N/A N/A N/A
SERVICE CLASS.................. 0 (536,906) 0 0
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD -
CLASS A........................ 2,321,689(1) N/A N/A 384,509,519(6)
REINVESTMENT OF DIVIDENDS -
CLASS A........................ 18,157(1) N/A N/A 18,391,336(6)
COST OF SHARES REDEEMED -
CLASS A........................ (293,242)(1) N/A N/A (1,356,042,883)(6)
------------------- ----------------- ---------------- ----------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A..... 2,046,604(1) N/A N/A (953,142,028)(6)
------------------- ----------------- ---------------- ----------------
PROCEEDS FROM SHARES SOLD -
ADMINISTRATIVE CLASS............. N/A N/A N/A N/A
REINVESTMENT OF DIVIDENDS -
ADMINISTRATIVE CLASS............. N/A N/A N/A N/A
COST OF SHARES REDEEMED -
ADMINISTRATIVE CLASS............. N/A N/A N/A N/A
------------------- ----------------- ---------------- ----------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
ADMINISTRATIVE CLASS............. N/A N/A N/A N/A
------------------- ----------------- ---------------- ----------------
PROCEEDS FROM SHARES SOLD -
CLASS B/CLASS E.................. N/A N/A N/A 1,725,982(6)
REINVESTMENT OF DIVIDENDS -
CLASS B/CLASS E.................. N/A N/A N/A 20,514(6)
COST OF SHARES REDEEMED -
CLASS B/CLASS E.................. N/A N/A N/A (2,951,181)(6)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
CLASS B/CLASS E.................. N/A N/A N/A (1,204,685)(6)
PROCEEDS FROM SHARES SOLD -
CLASS I.......................... N/A N/A N/A 731,376,920(7)
REINVESTMENT OF DIVIDENDS -
CLASS I.......................... N/A N/A N/A 1,406,629(7)
COST OF SHARES REDEEMED -
CLASS I.......................... N/A N/A N/A (510,255,263)(7)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS I..... N/A N/A N/A 222,528,286(7)
PROCEEDS FROM SHARES SOLD - SERVICE
CLASS............................ 18,415,108,001 19,545,459,290 4,446,530,993 231,243,670
REINVESTMENT OF DIVIDENDS - SERVICE
CLASS............................ 9,266,578 20,981,138 18,522,775 1,253,590
COST OF SHARES REDEEMED - SERVICE
CLASS............................ (18,269,816,785) (19,457,971,340) (4,028,593,568) (301,267,577)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - SERVICE
CLASS............................ 154,557,794 108,469,088 436,460,200 (68,770,317)
NET INCREASE (DECREASE) IN NET
ASSETS........................... 155,748,057 108,033,527 436,818,552 (800,627,843)
------------------- ----------------- ---------------- ----------------
NET ASSETS:
-----------------------------------------------------------------------------------------------------------------
ENDING NET ASSETS................ $ 1,704,296,646 $ 1,548,548,589 $ 1,440,515,062 $ 222,523,000
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A............ 2,321,689(1) N/A N/A 384,509,519(6)
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS A............ 18,157(1) N/A N/A 18,391,336(6)
SHARES REDEEMED - CLASS A........ (293,242)(1) N/A N/A (1,356,081,065)(6)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A............ 2,046,604(1) N/A N/A (953,180,210)(6)
SHARES SOLD - ADMINISTRATIVE
CLASS.......................... N/A N/A N/A N/A
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - ADMINISTRATIVE
CLASS.......................... N/A N/A N/A N/A
SHARES REDEEMED - ADMINISTRATIVE
CLASS.......................... N/A N/A N/A N/A
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - ADMINISTRATIVE
CLASS............................ N/A N/A N/A N/A
SHARES SOLD -
CLASS B/CLASS E................ N/A N/A N/A 1,725,982(6)
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E................ N/A N/A N/A 20,514(6)
SHARES REDEEMED -
CLASS B/CLASS E................ N/A N/A N/A (2,951,222)(6)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -
CLASS B/CLASS E.................. N/A N/A N/A (1,204,726)(6)
SHARES SOLD - CLASS I............ N/A N/A N/A 731,376,920(7)
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS I............ N/A N/A N/A 1,406,629(7)
SHARES REDEEMED - CLASS I........ N/A N/A N/A (510,255,263)(7)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS I............ N/A N/A N/A 222,528,286(7)
SHARES SOLD - SERVICE CLASS...... 18,415,108,001 4,446,530,993 4,446,530,993 231,243,670
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - SERVICE CLASS...... 9,266,578 18,522,775 18,522,775 1,253,590
SHARES REDEEMED - SERVICE
CLASS.......................... (18,269,816,785) (4,028,593,568) (4,028,593,568) (301,267,577)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - SERVICE CLASS...... 154,557,794 436,460,200 436,460,200 (68,770,317)
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT INCOME................ $ 168,885 $ 0 $ 0 $ 4
------------------- ----------------- ---------------- ----------------
<CAPTION>
TREASURY PLUS INSTITUTIONAL MONEY
PRIME INVESTMENT MONEY MARKET FUND
---------------------------------- -------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 1999 MAY 31, 1998 MARCH 31, 2000(8) MARCH 31, 1999
<S> <C> <C> <C> <C>
-----------------------------------
INCREASE (DECREASE) IN NET ASSETS
BEGINNING NET ASSETS............... $ 789,717,068 $ 1,927,115,608 $ 2,170,334,965 $ 2,142,695,178
OPERATIONS:
NET INVESTMENT INCOME (LOSS)....... 40,540,864 50,187,684 82,558,288 102,461,486
NET REALIZED GAIN (LOSS) ON SALE OF
INVESTMENTS...................... 8,287 48,398 (29,640) 94,206
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... 40,549,151 50,236,082 82,528,648 102,555,692
DISTRIBUTIONS TO SHAREHOLDERS FROM:
NET INVESTMENT INCOME
A SHARES....................... (38,948,607) (32,585,755) (24,950,102)(9) (21,822,781)
ADMINISTRATIVE SHARES.......... N/A N/A (2,208,198) (6,110,905)
B SHARES/CLASS E............... (41,042) (15,813) (13,974,099)(9) (28,595,708)
I SHARES....................... N/A (17,586,116) (29,064,561) (24,663,853)
SERVICE CLASS.................. (1,536,507) N/A (12,361,328) (21,268,239)
NET REALIZED GAIN ON SALE OF
INVESTMENTS
A SHARES....................... 0 0 0(9) (28,818)
ADMINISTRATIVE SHARES.......... N/A N/A N/A (6,270)
B SHARES/CLASS E............... 0 0 0(9) (34,041)
I SHARES....................... N/A 0 0 (29,922)
SERVICE CLASS.................. 0 N/A 0 (27,945)
CAPITAL SHARE TRANSACTIONS:
PROCEEDS FROM SHARES SOLD -
CLASS A........................ 487,586,321 659,278,049 1,284,191,796(9) 1,880,148,228
REINVESTMENT OF DIVIDENDS -
CLASS A........................ 38,964,610 32,598,158 3,111,729(9) 4,574,374
COST OF SHARES REDEEMED -
CLASS A........................ (362,778,775) (478,499,142) (1,831,221,877)(9) (1,722,403,471)
---------------- ---------------- ------------------ -------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS A..... 163,772,156 213,377,065 (543,918,352)(9) 162,319,131
---------------- ---------------- ------------------ -------------------
PROCEEDS FROM SHARES SOLD -
ADMINISTRATIVE CLASS............. N/A N/A 85,867,401(10) 211,237,826
REINVESTMENT OF DIVIDENDS -
ADMINISTRATIVE CLASS............. N/A N/A 2,358,799(10) 6,183,801
COST OF SHARES REDEEMED -
ADMINISTRATIVE CLASS............. N/A N/A (188,319,973)(10) (294,254,788)
---------------- ---------------- ------------------ -------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
ADMINISTRATIVE CLASS............. N/A N/A (100,093,773)(10) (76,833,161)
---------------- ---------------- ------------------ -------------------
PROCEEDS FROM SHARES SOLD -
CLASS B/CLASS E.................. 2,427,450 1,123,635 841,125,549(9) 1,690,444,889
REINVESTMENT OF DIVIDENDS -
CLASS B/CLASS E.................. 40,453 15,986 0(9) 0
COST OF SHARES REDEEMED -
CLASS B/CLASS E.................. (1,600,458) (1,457,455) (1,425,568,024)(9) (1,821,543,593)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS -
CLASS B/CLASS E.................. 867,445 (317,834) (584,442,475)(9) (131,098,704)
PROCEEDS FROM SHARES SOLD -
CLASS I.......................... N/A 1,297,000,821 48,358,025,436 5,020,036,817
REINVESTMENT OF DIVIDENDS -
CLASS I.......................... N/A 40,511 10,680,288 5,523,692
COST OF SHARES REDEEMED -
CLASS I.......................... N/A (2,647,547,501) (48,472,242,565) (5,033,058,755)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - CLASS I..... N/A (1,350,506,169) (103,536,841) (7,498,246)
PROCEEDS FROM SHARES SOLD - SERVICE
CLASS............................ 229,896,292 N/A 4,609,832,463 3,847,684,188
REINVESTMENT OF DIVIDENDS - SERVICE
CLASS............................ 1,528,404 N/A 8,789,197 5,368,260
COST OF SHARES REDEEMED - SERVICE
CLASS............................ (162,653,517) N/A (4,598,193,061) (3,772,268,891)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM CAPITAL
SHARE TRANSACTIONS - SERVICE
CLASS............................ 68,771,179 N/A 20,428,599 80,783,557
NET INCREASE (DECREASE) IN NET
ASSETS........................... 233,433,775 (1,137,398,540) (1,311,592,482) 27,639,787
---------------- ---------------- ------------------ -------------------
NET ASSETS:
-----------------------------------
ENDING NET ASSETS................ $ 1,023,150,843 $ 789,717,068 $ 858,742,483 $ 2,170,334,965
SHARE ISSUED AND REDEEMED:
SHARES SOLD - CLASS A............ 487,586,321 659,278,049 1,284,191,796(9) 1,880,148,228
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS A............ 38,964,610 32,598,158 3,111,729(9) 4,574,374
SHARES REDEEMED - CLASS A........ (362,778,775) (478,499,142) (1,831,248,142)(9) (1,722,403,471)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS A............ 163,772,156 213,377,065 (543,944,617)(9) 162,319,131
SHARES SOLD - ADMINISTRATIVE
CLASS.......................... N/A N/A 85,867,401(10) 211,237,826
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - ADMINISTRATIVE
CLASS.......................... N/A N/A 2,358,799(10) 6,183,801
SHARES REDEEMED - ADMINISTRATIVE
CLASS.......................... N/A N/A (188,320,695)(10) (294,254,788)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - ADMINISTRATIVE
CLASS............................ N/A N/A (100,094,495)(10) (76,833,161)
SHARES SOLD -
CLASS B/CLASS E................ 2,427,450 1,123,635 841,125,549(9) 1,732,685,998
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS -
CLASS B/CLASS E................ 40,453 15,986 0(9) 0
SHARES REDEEMED -
CLASS B/CLASS E................ (1,600,458) (1,457,455) (1,425,570,489)(9) (1,837,799,382)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING -
CLASS B/CLASS E.................. 867,445 (317,834) (584,444,940)(9) (105,113,384)
SHARES SOLD - CLASS I............ N/A 1,297,000,821 48,358,025,436 1,810,109,209
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - CLASS I............ N/A 40,511 11,059,800 3,525,822
SHARES REDEEMED - CLASS I........ N/A (2,647,547,501) (48,472,616,799) (1,761,788,362)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - CLASS I............ N/A (1,350,506,169) (103,531,563) 51,846,669
SHARES SOLD - SERVICE CLASS...... 229,896,292 N/A 4,609,832,463 2,944,938,308
SHARES ISSUED IN REINVESTMENT OF
DIVIDENDS - SERVICE CLASS...... 1,528,404 N/A 9,609,868 1,738,759
SHARES REDEEMED - SERVICE
CLASS.......................... (162,653,517) N/A (4,599,026,227) (3,062,972,733)
NET INCREASE (DECREASE) IN SHARES
OUTSTANDING - SERVICE CLASS...... 68,771,179 N/A 20,416,104 (116,295,666)
ENDING BALANCE OF UNDISTRIBUTED NET
INVESTMENT INCOME................ $ 11,637 $ (3,100) $ 0 $ 0
---------------- ---------------- ------------------ -------------------
</TABLE>
53
<PAGE>
MONEY MARKET FUNDS NOTES TO STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
NOTES TO STATEMENTS OF CHANGES
--------------------------------------------------------------------------------
(1) This class of shares commenced operations on November 8, 1999.
(2) "Proceeds from shares sold" includes $2,053,684,696 for Service Class, and
"Shares sold" includes 2,053,752,793 for Service Class, as a result of the
consolidation of the Service and Administrative Class shares of the
Stagecoach Prime Money Market Fund. "Proceeds from shares sold" includes
$1,698,113,998 for the Institutional Class, and "Shares sold" includes
1,698,194,434 for the Institutional Class as a result of the consolidation
of the Stagecoach Prime Money Market Fund.
(3) "Proceeds from shares sold" includes $35,535,275 for the Institutional
Class, and "Shares sold" includes 35,542,045 for the Institutional Class
as a result of the consolidation of the Stagecoach National Tax-Free Money
Market Fund.
(4) This class of shares merged into the Well Fargo National Tax-Free Money
Market Fund on November 8, 1999.
(5) "Proceeds from shares sold" includes $59,954,527 for Class A, and "Shares
sold" includes 59,955,742 for Class A as a result of the consolidation of
the Stagecoach Government Money Market Fund.
(6) This class of shares merged into the Well Fargo Money Market Fund on
November 8, 1999.
(7) The Institutional Class of shares became Service Class shares on November
8, 1999.
(8) "Proceeds from shares sold" includes $106,952,490 for the Service Class,
and "Shares sold" includes 106,961,046 for the Service Class as a result
of the consolidation of the Norwest Treasury Plus Money Market Fund.
(9) This class of shares merged into the Well Fargo Treasury Plus Money Market
Fund on November 8, 1999.
(10) The Administrative Class of shares became Service Class shares on
November 8, 1999.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
54
<PAGE>
THIS PAGE IS INTENTIONALLY LEFT BLANK --
55
<PAGE>
MONEY MARKET FUNDS FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NET REALIZED
BEGINNING AND DIVIDENDS DISTRIBUTIONS
NET ASSET NET UNREALIZED FROM NET FROM NET
VALUE PER INVESTMENT GAIN (LOSS) ON INVESTMENT REALIZED
SHARE INCOME INVESTMENTS INCOME GAINS
<S> <C> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
SERVICE CLASS
NOVEMBER 8, 1999(2) TO
MARCH 31, 2000......... $ 1.00 0.01 0 (0.01) $ 0
CASH INVESTMENT MONEY MARKET FUND
-------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0 (0.04) 0
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 0.05 0 (0.05) 0
GOVERNMENT MONEY MARKET FUND
-------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0 (0.04) 0
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 0.05 0 (0.05) 0
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
-------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.03 0 (0.03) 0
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.03 0 (0.03) 0
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.03 0 (0.03) 0
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.03 0 (0.03) 0
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.04 0 (0.04) 0
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 0.03 0 (0.03) 0
100% TREASURY MONEY MARKET FUND
-------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0 (0.04) 0
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 0.04 0 (0.04) 0
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 0.05 0 (0.05) 0
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 0.05 0 (0.05) 0
PRIME INVESTMENT MONEY MARKET FUND
-------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 0.04 0 (0.04) 0
SEPTEMBER 2, 1998(2) TO
MAY 31, 1999........... 1.00 0.04 0 (0.04) 0
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND(5)
-------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 1999 TO
MARCH 31, 2000......... 1.00 0.05 0 (0.05) 0
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 0.05 0 (0.05) 0
APRIL 1, 1997 TO
MARCH 31, 1998......... 1.00 0.05 0 (0.05) 0
OCTOBER 1 , 1996 TO
MARCH 31, 1997(6)...... 1.00 0.02 0 (0.02) 0
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 1.00 0.05 0 (0.05) 0
OCTOBER 1, 1994 TO
SEPTEMBER 30, 1995..... 1.00 0.05 0 (0.05) 0
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
56
<PAGE>
FINANCIAL HIGHLIGHTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ENDING RATIO TO AVERAGE NET ASSETS (ANNUALIZED)
NET ASSET ------------------------------------------ NET ASSETS AT
VALUE PER NET INVESTMENT NET GROSS TOTAL END OF PERIOD
SHARE INCOME EXPENSES EXPENSES(1) RETURN (000'S OMITTED)
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------
CALIFORNIA TAX-FREE MONEY MARKET FUND
SERVICE CLASS
NOVEMBER 8, 1999(2) TO
MARCH 31, 2000......... $ 1.00 2.69% 0.45% 0.51% 1.10% $ 75,697
CASH INVESTMENT MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 5.23%(4) 0.48%(4) 0.54%(4) 4.37% 9,082,788
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 4.91%(4) 0.48%(4) 0.57%(4) 5.04% 5,481,802
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 5.29%(4) 0.48%(4) 0.57%(4) 5.42% 4,685,818
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 5.07% 0.48% 0.49% 5.21% 2,147,894
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 5.36% 0.48% 0.49% 5.50% 1,739,549
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 4.87% 0.48% 0.50% 4.96% 1,464,304
GOVERNMENT MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 4.94% 0.50% 0.54% 4.18% 3,433,956
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 4.69% 0.50% 0.52% 4.81% 3,368,534
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 5.08% 0.50% 0.51% 5.20% 2,260,208
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 4.91% 0.49% 0.49% 5.04% 1,912,574
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 5.13% 0.50% 0.51% 5.27% 1,649,721
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 4.68% 0.50% 0.52% 4.81% 1,159,421
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 3.05% 0.45% 0.57% 2.58% 1,124,073
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 2.91% 0.45% 0.57% 2.97% 1,019,589
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 3.32% 0.45% 0.59% 3.39% 977,693
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 3.21% 0.45% 0.70% 3.28% 635,655
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 3.41% 0.45% 0.72% 3.52% 592,436
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 3.37% 0.45% 0.74% 3.33% 278,953
100% TREASURY MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 4.67% 0.46% 0.54% 3.94% 1,702,250
JUNE 1, 1998 TO MAY 31,
1999................... 1.00 4.34% 0.46% 0.53% 4.49% 1,548,549
JUNE 1, 1997 TO MAY 31,
1998................... 1.00 4.89% 0.46% 0.54% 5.00% 1,440,515
JUNE 1, 1996 TO MAY 31,
1997................... 1.00 4.74% 0.46% 0.53% 4.87% 1,003,697
JUNE 1, 1995 TO MAY 31,
1996................... 1.00 4.91% 0.46% 0.56% 5.04% 802,270
JUNE 1, 1994 TO MAY 31,
1995................... 1.00 4.62% 0.46% 0.57% 4.65% 661,098
PRIME INVESTMENT MONEY MARKET FUND
---------------------------------------------------------------------------------------------------------------
SERVICE CLASS
JUNE 1, 1999 TO
MARCH 31, 2000(3)...... 1.00 5.15%(4) 0.55%(4) 0.93%(4) 4.30% 222,523
SEPTEMBER 2, 1998(2) TO
MAY 31, 1999........... 1.00 4.69%(4) 0.54%(4) 0.74%(4) 3.59% 68,771
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND(5)
---------------------------------------------------------------------------------------------------------------
SERVICE CLASS
APRIL 1, 1999 TO
MARCH 31, 2000......... 1.00 5.04% 0.45% 0.63% 4.76% 468,150
APRIL 1, 1998 TO
MARCH 31, 1999......... 1.00 4.70% 0.45% 0.70% 4.83% 447,886
APRIL 1, 1997 TO
MARCH 31, 1998......... 1.00 5.07% 0.45% 0.65% 5.20% 367,111
OCTOBER 1 , 1996 TO
MARCH 31, 1997(6)...... 1.00 4.91% 0.45% 0.61% 2.47% 483,401
OCTOBER 1, 1995 TO
SEPTEMBER 30, 1996..... 1.00 4.98% 0.45% 0.60% 5.03% 1,340,325
OCTOBER 1, 1994 TO
SEPTEMBER 30, 1995..... 1.00 5.32% 0.42% 0.66% 5.42% 1,001,707
</TABLE>
57
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
(1) During each period, various fees and expenses were waived and reimbursed.
The ratio of Gross Expenses to Average Net Assets reflects the expense
ratio in the absence of any waivers and reimbursements (Note 9).
(2) Commencement of operations
(3) The Fund changed its fiscal year-end from May 31 to March 31
(4) Includes expenses allocated from the affiliated Portfolio(s) in which the
Fund invested.
(5) The Fund operated as a portfolio of Pacific American Funds through
October 1, 1994, when it was reorganized as the Pacific American U.S.
Treasury Portfolio, a portfolio of Pacifica Funds Trust. In July 1995, the
Fund was renamed the Pacifica Treasury Money Market Fund, and on
September 6, 1996, the Fund was reorganized as a series of Stagecoach
Funds, Inc. In conjunction with the September 6, 1996 reorganization, WFB
assumed investment advisory responsibilites. Prior to April 1, 1996, First
Interstate Capital Management, Inc. ("FICM") served as the Fund's adviser.
In connection with the merger of First Interstate Bancorp into Wells
Fargo & Co. on April 1, 1996, FICM was renamed Wells Fargo Investment
Management, Inc., subsequently renamed Wells Capital Management, Inc.
(6) The Fund changed its fiscal year-end from September 30 to March 31
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
58
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. ORGANIZATION
Wells Fargo Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end series
management investment company. The Trust commenced operations on November 8,
1999, and is currently comprised of 61 separate series. These financial
statements represent the California Tax-Free Money Market, Cash Investment
Money Market, Government Money Market, National Tax-Free Institutional Money
Market, 100% Treasury Money Market, Prime Investment Money Market, and
Treasury Plus Institutional Money Market Funds (each, a "Fund", collectively,
the "Funds"), each with the exception of the California Tax-Free Money Market
Fund, a diversified series of the Trust. The California Tax-Free Money Market
Fund is a non-diversified series of the Trust.
Concurrent with the establishment of the Trust, the Board of Trustees of the
Stagecoach Family of Funds and the Board of Trustees of the Norwest Advantage
Funds approved a consolidation agreement providing for the acquisition of the
assets and assumption of liabilities of certain Stagecoach and Norwest
Advantage Funds into the Wells Fargo Funds Trust (the "Consolidation").
Effective on the close of business November 5, 1999 the Stagecoach and/or
Norwest Advantage Funds were consolidated into the Wells Fargo Funds Trust
through an exchange of shares as follows:
<TABLE>
<S> <C> <C>
STAGECOACH FUND NORWEST ADVANTAGE FUND WELLS FARGO FUND
CALIFORNIA TAX-FREE MONEY MARKET FUND CALIFORNIA TAX-FREE MONEY MARKET FUND
(A)*
PRIME MONEY MARKET FUND CASH INVESTMENT FUND (SVC)* CASH INVESTMENT MONEY MARKET FUND
(AD, SVC, I)
GOVERNMENT MONEY MARKET FUND (A) U.S. GOVERNMENT FUND (SVC)* GOVERNMENT MONEY MARKET FUND
NATIONAL TAX-FREE MONEY MARKET FUND (I) MUNICIPAL MONEY MARKET FUND (SVC)* NATIONAL TAX-FREE INSTITUTIONAL MONEY
MARKET FUND
TREASURY FUND (SVC)* 100% TREASURY MONEY MARKET FUND
READY CASH INVESTMENT FUND (I)* PRIME INVESTMENT MONEY MARKET FUND
TREASURY PLUS MONEY MARKET FUND (AD, TREASURY PLUS FUND (SVC) TREASURY PLUS INSTITUTIONAL MONEY MARKET
SVC, I)* FUND
</TABLE>
* ACCOUNTING SURVIVOR
In the Consolidation, the Wells Fargo Cash Investment Money Market Fund
acquired all of the net assets attributable to Administrative, Service and
Institutional share classes of the Stagecoach Prime Money Market Fund and all
of the net assets of the Service class of the Norwest Advantage Cash
Investment Fund. The Administrative, Service and Institutional share classes
of Stagecoach Prime Money Market Fund exchanged their 3,751,947,227 shares for
3,751,947,227 shares of the Wells Fargo Cash Investment Money Market Fund.
Concurrent with the Consolidation, Administrative shares of Stagecoach Prime
Money Market Fund became Service shares of Wells Fargo Cash Investment Money
Market Fund.
In the Consolidation, the Wells Fargo Government Money Market Fund acquired
all of the net assets of the Stagecoach Government Money Market Fund and
Norwest Advantage U.S. Government Fund. The Stagecoach Government Money Market
Fund exchanged its 59,955,742 shares for 59,955,742 shares of the Wells Fargo
Government Money Market Fund.
In the Consolidation, the Wells Fargo National Tax-Free Institutional Money
Market Fund acquired all of the net assets of the I share class of the
Stagecoach National Tax-Free Money Market Fund and all of the net assets of
the Service share class of the Norwest Municipal Money Market Fund. The I
share class of Stagecoach National Tax-Free Money Market Fund exchanged its
35,542,045 shares for 35,542,045 shares of the Wells Fargo National Tax-Free
Institutional Money Market Fund.
In the Consolidation, the Wells Fargo Treasury Plus Institutional Money
Market Fund acquired all of the net assets of the Administrative, Service and
Institutional shares of the Stagecoach Treasury Plus Money Market Fund and the
Service shares of the Norwest Treasury Plus Fund. The Norwest Treasury Plus
Fund exchanged its 106,961,046 shares for 106,961,046 shares of the Wells
Fargo Treasury Plus Institutional Money Market Fund. Concurrent with the
Consolidation, the Administrative shares of Stagecoach Treasury
59
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Plus Money Market Fund became Service shares of Wells Fargo Treasury Plus
Institutional Money Market Fund.
The California Tax-Free Money Market, Government Money Market, and 100%
Treasury Money Market Funds offer Class A and Service Class shares. The Cash
Investment Money Market, National Tax-Free Institutional Money Market, and
Treasury Plus Institutional Money Market Funds offer Service Class and
Institutional Class shares. The Prime Investment Money Market Fund only offers
Service Class shares. The separate classes of shares differ principally in the
applicable sales charges (if any), distribution fees, registration and
transfer agency fees. Shareholders of each class may also bear certain
expenses that pertain to that particular class. All shareholders bear the
common expenses of the Fund and earn income from the portfolio pro rata based
on the average daily net assets of each class, without distinction between
share classes. Dividends are determined separately for each class based on
income and expenses allocable to each class. Realized gains are allocated to
each class pro rata based on the net assets of each class on the date of
distribution. No class has preferential dividend rights. Differences in per
share dividend rates generally result from differences in separate class
expenses, including distribution, shareholder servicing and transfer agency
fees.
At the time of the Consolidation, the Cash Investment Money Market and Prime
Investment Money Market Funds, structured as "Gateway" Funds in a
"Core-Gateway" structure, were restructured to invest directly in a portfolio
of securities, rather than to invest in portfolio securities through "Core"
portfolios (Prime Money Market Portfolio, Money Market Portfolio).
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies which are consistently followed
by the Trust in the preparation of its financial statements are in conformity
with generally accepted accounting principles ("GAAP") for investment
companies.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
The Funds invest only in securities with remaining maturities not exceeding
397 days (13 months). Certain floating- and variable-rate instruments in the
portfolios may have maturities in excess of 397 days, but carry a demand
feature that permits the holder to tender the instruments back to the issuer
at par value prior to maturity.
The Funds use the amortized cost method to value their portfolio securities.
The amortized cost method involves valuing a security at its cost, plus
accretion of discount or minus amortization of premium over the period until
maturity, which approximates market value. The Funds seek to maintain a
constant net asset value of $1.00 per share, although there is no assurance
that they will be able to do so.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Securities transactions are recorded on a trade date basis. Realized gains or
losses are reported on the basis of identified cost of securities delivered.
Interest income is accrued daily and bond discounts are accreted and premiums
are amortized under provisions of the Internal Revenue Code of 1986, as
amended (the "Code").
REPURCHASE AGREEMENTS
Each Fund, with exception to the 100% Treasury Money Market and National
Tax-Free Institutional Money Market Funds, may invest in repurchase agreements
and may participate in pooled repurchase agreement transactions with other
funds advised by Wells Fargo Bank, N.A. ("WFB"). The repurchase agreements
must be fully collateralized based on values that are marked to market daily.
The collateral may be held by an agent bank under a tri-party agreement. It is
the Funds' custodians' responsibility to value collateral daily and to take
action to obtain additional collateral as necessary to maintain market value
equal to or greater than the resale price. The repurchase agreements held by
the Funds are collateralized by instruments such as U.S. Treasury, federal
agency, high-grade corporate obligations.
60
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
RECLASSIFICATION OF CAPITAL ACCOUNTS
On the Statement of Assets and Liabilities, as a result of permanent
book-to-tax and merger-related differences, reclassification adjustments were
made as follows:
<TABLE>
<CAPTION>
Undistributed
Undistributed Net Net Realized
Investment Income Gain/Loss Paid in Capital
<S> <C> <C> <C>
CASH INVESTMENT MONEY MARKET FUND 147,334 1,667,793 (1,815,127)
GOVERNMENT MONEY MARKET FUND 56,270 77,612 (133,882)
NATIONAL TAX-FREE INSTITUTIONAL
MONEY MARKET FUND 126,904 (122,523) (4,381)
100% TREASURY MONEY MARKET FUND 66,880 (66,880) 0
PRIME INVESTMENT MONEY MARKET FUND 3,073 26.758 (29,831)
TREASURY PLUS INSTITUTIONAL MONEY
MARKET FUND 0 10,430 (10,430)
</TABLE>
DISTRIBUTIONS TO SHAREHOLDERS
Dividends to shareholders from net investment income, if any, are declared
daily and distributed monthly. Distributions to shareholders from net realized
capital gains, if any, are declared and distributed at least annually.
Distributions are based on amounts calculated in accordance with the
applicable federal income tax regulations, which may differ from generally
accepted accounting principles. The timing and character of distributions made
during the period from net investment income or net realized gains may also
differ from their ultimate characterization for federal income tax purposes.
The differences between the income or gains distributed on a book versus tax
basis are shown as excess distributions of net investment income and net
realized gain on sales of investments in the accompanying Statements of
Changes in Net Assets. To the extent that these differences are permanent in
nature, such amounts are reclassified within the capital accounts based on
their federal tax-basis treatment; temporary differences do not require
reclassifications.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity for federal income tax purposes. It
is the policy of each Fund of the Trust to continue to qualify as a regulated
investment company by complying with the provisions applicable to regulated
investment companies, as defined in the Code, and to make distributions of
substantially all of its investment company taxable income and any net
realized capital gains (after reduction for capital loss carryforwards)
sufficient to relieve it from all, or substantially all, federal income taxes.
Accordingly, no provision for federal income taxes was required at March 31,
2000.
61
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
The following Funds had estimated net capital loss carryforwards, which are
available to offset future net realized capital gains:
<TABLE>
<CAPTION>
Capital Loss
Fund Year Expires Carryforwards
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 3/31/02 $ 92,680
3/31/03 31,569
3/31/05 144,877
3/31/06 25,929
3/31/07 358,280
3/31/08 10,810
100% TREASURY MONEY MARKET FUND 3/31/08 $ 780,757
GOVERNMENT MONEY MARKET FUND 3/31/08 $ 107,576
NATIONAL TAX-FREE INSTITUTIONAL MONEY 3/31/08 $ 47,645
MARKET FUND
PRIME INVESTMENT MONEY MARKET FUND 3/31/08 $ 5,205
TREASURY PLUS INSTITUTIONAL MONEY MARKET 3/31/08 $ 12,004
FUND
</TABLE>
The 100% Treasury Money Market Fund has current post-October deferred capital
losses of $385,239. Such losses will be recognized for tax purposes on the
first day of the following tax year.
3. ADVISORY FEES
The Trust has entered into separate advisory contracts on behalf of the Funds
with WFB. Pursuant to the contracts, WFB has agreed to provide the following
Funds with daily portfolio management, for which, WFB is entitled to be paid a
monthly advisory fee at the following annual rates:
<TABLE>
<CAPTION>
Fund % of Average Daily Net Assets
<S> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND 0.30
CASH INVESTMENT MONEY MARKET FUND 0.10
GOVERNMENT MONEY MARKET FUND 0.35
NATIONAL TAX-FREE INSTITUTIONAL MONEY MARKET FUND 0.10
100% TREASURY MONEY MARKET FUND 0.35
PRIME INVESTMENT MONEY MARKET FUND 0.10
TREASURY PLUS INSTITUTIONAL MONEY MARKET FUND 0.10
</TABLE>
Wells Capital Management Incorporated ("WCM"), a wholly-owned subsidiary of
WFB, acts as investment sub-advisor to the Funds. WCM is entitled to receive
from WFB, as compensation for its sub-advisory services to the Funds, a
monthly fee at the annual rate of 0.05% of each Fund's average daily net
assets up to $1 billion and 0.04% of each Fund's average daily net assets in
excess of $1 billion.
Prior to November 8, 1999 the Trust had entered into separate advisory
contracts on behalf of the California Tax-Free Money Market and Treasury Plus
Institutional Money Market Funds with WFB. Pursuant to the contracts, WFB had
agreed to provide the Funds with daily portfolio management. Under the old
contracts with the Funds, WFB was entitled to be paid monthly advisory fees at
the annual rates of 0.50% of the California Tax-Free Money Market Fund's
average daily net assets and 0.25% of the Treasury Plus Institutional Money
Market Fund's average daily net assets.
Prior to November 8, 1999 the investment adviser to the Cash Investment Money
Market, Government Money Market, National Tax-Free Institutional Money Market,
100% Treasury Money Market, and Prime Investment Money Market Funds was
Norwest Investment Management, Inc. ("Adviser"), a wholly-owned subsidiary of
Norwest Bank Minnesota, N.A. ("Norwest"), which is a subsidiary of Wells
Fargo & Company. For the Government Money Market and 100% Treasury Money
Market Funds, the Adviser was entitled to be paid an advisory fee at the
annual rate of 0.20% of each Fund's average daily net assets up to
62
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
$300 million, declining to 0.12% of the average daily net assets of each Fund
in excess of $700 million. The Adviser received an advisory fee from the
National Tax-Free Institutional Money Market Fund at an annual rate of 0.35%
of the average daily net assets up to $500 million, declining to 0.30% of the
average daily net assets in excess of $1 billion. The Adviser did not receive
advisory fees with respect to the Cash Investment Money Market and Prime
Investment Money Market Funds as long as the Funds remained completely
invested in the Portfolios of Core Trust, a registered open-end management
investment company.
4. DISTRIBUTION FEES
There are no distribution fees for Class A, Service Class, and Institutional
Class shares.
Prior to November 8, 1999 the Distribution Plan (the "Plan") for the Class A
shares of the California Tax-Free Money Market Fund provided that the Fund may
defray all or part of the cost of preparing, printing and distributing
prospectuses and other promotional materials by paying for costs incurred on
an annual basis of up to 0.05% of the average daily net assets attributable to
the Fund's Class A shares. This Plan for the Class A shares provided only for
the reimbursement of actual expenses.
5. ADMINISTRATION FEES
The Trust has entered into an administration agreement on behalf of the Funds
with WFB whereby WFB is entitled to receive monthly fees at the annual rate of
0.15% of each Fund's average daily net assets.
Prior to November 8, 1999, the Administrator for the Cash Investment Money
Market, Government Money Market, National Tax-Free Institutional Money Market,
100% Treasury Money Market, and Prime Investment Money Market Funds was Forum
Administrative Services, LLC ("FAdS"). The Government Money Market, National
Tax-Free Institutional Money Market, and 100% Treasury Money Market Funds were
charged monthly fees at the annual rate of 0.05% of each Fund's average daily
net assets. The Cash Investment Money Market and Prime Investment Money Market
Funds were charged monthly fees at the annual rates of 0.025% and 0.075%,
respectively, of each Fund's average daily net assets.
6. TRANSFER AGENT FEES
The Trust has entered into a transfer agency agreement on behalf of the Funds
with Boston Financial Data Services ("BFDS"). WFB has been engaged by BFDS to
provide sub-transfer agency services for the Funds. Prior to November 8, 1999,
for the Cash Investment Money Market, Government Money Market, National
Tax-Free Institutional Money Market, 100% Treasury Money Market, and Prime
Investment Money Market Funds, Norwest served as the Trust's transfer agent.
For these services, Norwest received a fee at an annual rate of 0.20% of the
average daily net assets for the Cash Investment Money Market Fund, 0.10% of
the average daily net assets for the National Tax-Free Institutional Money
Market and Prime Investment Money Market Funds, and 0.25% of the average daily
net assets for the Government Money Market and 100% Treasury Money Market
Funds.
Prior to July 17, 1999 the Trust had entered into a contract on behalf of the
Funds with WFB, whereby WFB provided transfer agency services for the
California Tax-Free Money Market and Treasury Plus Institutional Money Market
Funds, which were charged at an annual rate of 0.10% of each Fund's average
daily net assets for Class A and Service Class shares and 0.02% for
Institutional Class shares.
7. SHAREHOLDER SERVICING FEES
The Trust has entered into contracts on behalf of the Funds with numerous
shareholder servicing agents, whereby the Funds are charged 0.25% of the
average daily net assets of each Fund for Class A shares for these services.
The Cash Investment Money Market, National Tax-Free Institutional Money
Market, Prime Investment Money Market, and Treasury Plus Institutional Money
Market Funds are charged 0.25% of the average daily net assets of Class A
shares of each Fund for Service Class shares. No fee is charged for Service
Class shares of the California Tax-Free Money Market, Government Money Market,
and 100% Treasury Money Market Funds and Institutional Class shares of the
Cash Investment Money Market, National Tax-Free Institutional Money Market,
and Treasury Plus Institutional Money Market Funds. Prior to November 8, 1999,
shareholder servicing fees were charged at an annual rate of 0.30% of the
average daily net assets of the Class A shares of the California Tax-Free
Money Market Fund and 0.20% of the average daily net assets of the Service
Class shares of the Treasury Plus Institutional Money Market Fund.
63
<PAGE>
MONEY MARKET FUNDS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
The shareholder servicing fees paid on behalf of the Funds for the period
ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Fund Class A Service Class
<S> <C> <C>
CALIFORNIA TAX-FREE MONEY MARKET FUND $ 6,663,703 $ 0
CASH INVESTMENT MONEY MARKET FUND N/A 8,782,975
GOVERNMENT MONEY MARKET FUND 59,314 0
NATIONAL TAX-FREE INSTITUTIONAL MONEY
MARKET FUND N/A 1,099,922
100% TREASURY MONEY MARKET FUND 951 0
PRIME INVESTMENT MONEY MARKET FUND N/A 89,287
TREASURY PLUS INSTITUTIONAL MONEY MARKET
FUND N/A 3,181,836
</TABLE>
8. OTHER FEES AND TRANSACTIONS WITH AFFILIATES
Forum Accounting Services, LLC ("Forum") provides portfolio accounting
services to the Funds. WFB provides sub-portfolio accounting services to the
California Tax-Free Money Market Fund. For these services, WFB is entitled to
a fixed monthly fee from the Fund plus an annual fee of 0.0025% of the Fund's
average daily net assets. Prior to November 8, 1999, the Trust entered into
contracts on behalf of the California Tax-Free Money Market and Treasury Plus
Institutional Money Market Funds with WFB, whereby WFB was responsible for
providing portfolio accounting services for the Funds. Pursuant to the
contract, WFB was entitled to a monthly base fee from each Fund of $2,000 plus
an annual fee of 0.07% of the first $50 million of each Fund's average daily
net assets, 0.045% of the next $50 million, and 0.02% of each Fund's average
daily net assets in excess of $100 million.
The Trust has entered into contracts on behalf of each Fund with Norwest Bank
Minnesota, N.A. ("Norwest"), an affiliated party, whereby Norwest is
responsible for providing custody services for the Funds. Pursuant to the
contracts, Norwest is entitled to certain transaction charges plus a monthly
fee for custody services at the annual rate of 0.02% of the average daily net
assets of each Fund. Prior to November 8, 1999, the Cash Investment Money
Market, Government Money Market, National Tax-Free Institutional Money Market,
100% Treasury Money Market, and Prime Investment Money Market Funds had
Norwest serve as the custodian. For its custody services, Norwest was entitled
to receive a fee at an annual rate of 0.02% for the first $100 million of
average daily net assets of each Fund, 0.015% of the next $100 million of each
Fund's average daily net assets, and 0.01% of each Fund's average daily net
assets in excess of $200 million. No custody fee was directly payable by a
Fund to the extent the Fund was invested in a Portfolio of Core Trust. Prior
to November 8, 1999 the California Tax-Free Money Market and Treasury Plus
Institutional Money Market Funds had the above service performed for a fee at
an annual rate of 0.0167% of the average daily net assets of each Fund. Prior
to June 4, 1999 WFB performed the above services for the California Tax-Free
Money Market and Treasury Plus Institutional Money Market Funds for the same
fees.
Certain officers of the Trust are also officers of Stephens. As of March 31,
2000, Stephens owned 113,246 shares of the California Tax-Free Money Market
Fund, 83 shares of the Cash Investment Money Market Fund, 0 shares of the
Government Money Market Fund, 0 shares of the National Tax-Free Institutional
Money Market Fund, 0 shares of the 100% Treasury Money Market Fund, 0 shares
of the Prime Investment Money Market Fund, and 0 shares of the Treasury Plus
Institutional Money Market Fund.
9. WAIVED FEES AND REIMBURSED EXPENSES
All amounts shown as waived fees or reimbursed expenses on the Statement of
Operations, for the period ended March 31, 2000, were waived by WFB or FAdS.
Fee waivers are contractual and apply for one year from the closing date of
the reorganization. After this time, the Advisor, with Board approval, may
reduce or eliminate such waivers.
64
<PAGE>
NOTES TO FINANCIAL STATEMENTS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fees Waived by Fees Reimbursed Fees Waived by
FAdS by Stephens WFB Total Fees Waived
<S> <C> <C> <C> <C>
CALIFORNIA TAX-FREE MONEY
MARKET FUND $ 0 $ $7,309,075 $7,309,075
CASH INVESTMENT MONEY MARKET
FUND 989,254 0 2,800,865 3,790,119
GOVERNMENT MONEY MARKET FUND 80,126 0 950,369 1,030,495
NATIONAL TAX-FREE
INSTITUTIONAL MONEY MARKET
FUND 590,744 0 533,502 1,124,246
100% TREASURY MONEY MARKET
FUND 446,427 0 669,179 1,115,606
PRIME INVESTMENT MONEY MARKET
FUND 202,876 0 38,215 241,091
TREASURY PLUS INSTITUTIONAL
MONEY MARKET FUND 0 0 3,315,845 3,315,845
</TABLE>
65
<PAGE>
MONEY MARKET FUNDS INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
TO THE SERVICE CLASS SHAREHOLDERS AND BOARD OF TRUSTEES
WELLS FARGO FUNDS TRUST:
We have audited the accompanying statements of assets and liabilities of
California Tax-Free Money Market Fund, Cash Investment Money Market Fund,
Government Money Market Fund, National Tax-Free Institutional Money Market
Fund, 100% Treasury Money Market Fund, Prime Investment Money Market Fund and
Treasury Plus Institutional Money Market Fund (seven of the funds comprising
Wells Fargo Funds Trust), including the Portfolios of Investments as of
March 31, 2000, and the related statements of operations, statements of
changes in net assets and the financial highlights for the periods presented.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of March 31, 2000, by
correspondence with the custodian. As to securities purchased but not yet
received, we performed other appropriate auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds of Wells Fargo Funds Trust as of March 31, 2000,
the results of their operations, changes in their net assets and their
financial highlights for the periods indicated above in conformity with
accounting principles generally accepted in the United States of America.
[LOGO]
San Francisco, California
May 12, 2000
66
<PAGE>
MONEY MARKET FUNDS
--------------------------------------------------------------------------------
TAX INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
For federal and California income tax purposes, the California Tax-Free Money
Market Fund designates 100% of the distributions paid from net investment
income as exempt-interest dividends under Section 852(b)(5) of the Internal
Revenue Code and under Section 17145 of the California Revenue and Taxation
Code for the period January 1, 2000 to March 31, 2000 (its first tax year
after the reorganization).
For federal income tax purposes, the National Tax-Free Institutional Money
Market Fund designates 100% of the distributions paid from net investment
income as exempt-interest dividends under Section 852(b)(5) of the Internal
Revenue Code for the period November 6, 1999 to March 31, 2000 (its first tax
year after the reorganization).
For California income tax purposes, the 100% Treasury Money Market Fund
designates 100% of the distributions paid from net investment income as
California exempt-interest dividends under Section 17145 of the California
Revenue and Taxation Code for the period June 1, 1999 to March 31, 2000 (its
first tax year after the reorganization).
For California income tax purposes, the Treasury Plus Institutional Money
Market Fund designates 58% of the distributions paid from net investment
income as California exempt-interest dividends under Section 17145 of the
California Revenue and Taxation Code for the period November 6, 1999 to
March 31, 2000 (its first tax year after the reorganization).
67
<PAGE>
CORE PORTFOLIOS STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
The Cash Investment Money Market and Prime Investment Money Market Funds
invested in the Money Market and Prime Money Market Core Portfolios (the
Portfolios) prior to November 5, 1999. The financial statements of the
Portfolios for the periods ended November 5, 1999 are presented to provide
information regarding the Portfolios' operating results prior to their
liquidation on November 5, 1999.
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO PRIME MONEY MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
NOVEMBER 5, 1999 MAY 31, 1999 NOVEMBER 5, 1999 MAY 31, 1999
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
INTEREST.............................. $67,872,507 $150,826,716 $92,129,408 $197,103,552
----------- ------------ ----------- ------------
TOTAL INVESTMENT INCOME................. 67,872,507 150,826,716 92,129,408 197,103,552
----------- ------------ ----------- ------------
EXPENSES
ADVISORY.............................. 1,718,053 3,761,486 5,733,823 12,130,849
ADMINISTRATION........................ 642,996 1,400,619 868,587 1,832,945
CUSTODY............................... 135,156 295,124 180,275 381,589
ACCOUNTING............................ 33,267 86,500 36,952 87,500
LEGAL................................. 1,430 11,509 1,880 14,498
AUDIT................................. 0 21,591 0 23,734
DIRECTORS' FEES....................... 0 5,246 0 6,869
AMORTIZATION OF ORGANIZATION COSTS.... 1,265 3,036 1,265 3,036
OTHER................................. 12,244 15,287 16,650 40,106
----------- ------------ ----------- ------------
TOTAL EXPENSES.......................... 2,544,411 5,600,398 6,839,432 14,521,126
----------- ------------ ----------- ------------
LESS
WAIVED FEES AND REIMBURSED EXPENSES... (1,075,334) (2,360,589) (427) (1,419)
NET EXPENSES.......................... 1,469,077 3,239,809 6,839,005 14,519,707
----------- ------------ ----------- ------------
NET INVESTMENT INCOME................... 66,403,430 147,586,907 85,290,403 182,583,845
----------- ------------ ----------- ------------
NET REALIZED GAIN FROM INVESTMENTS...... (44,590) 27,280 (29,215) 36,033
----------- ------------ ----------- ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS....................... $66,358,840 $147,614,187 $85,261,188 $182,619,878
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
68
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-------------------------------------------------------------
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 5, 1999 (1) MAY 31, 1999 MAY 31, 1998 (2)
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------
BEGINNING NET ASSETS.......... $ 2,767,879,934 $ 2,372,368,662 $ 0
OPERATIONS:
NET INVESTMENT INCOME....... 66,403,430 147,586,907 95,111,701
NET REALIZED LOSS FROM
INVESTMENTS............... (44,590) 27,280 (21,885)
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS... 66,358,840 147,614,187 95,089,816
--------------- --------------- ---------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
CONTRIBUTIONS............... 1,701,401,824 3,728,647,352 4,410,026,378
WITHDRAWALS................. (1,476,602,545) (3,480,750,267) (2,132,747,532)
LIQUIDATING DISTRIBUTIONS... (3,059,038,053)
--------------- --------------- ---------------
NET INCREASE (DECREASE) FROM
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS........ (2,834,238,774) 247,897,085 2,277,278,846
--------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS...................... (2,767,879,934) 395,511,272 2,372,368,662
--------------- --------------- ---------------
ENDING NET ASSETS............. $ 0 $ 2,767,879,934 2,372,368,662
--------------- --------------- ---------------
--------------- --------------- ---------------
</TABLE>
(1) THE PORTFOLIOS CEASED OPERATIONS ON NOVEMBER 5, 1999
(2) THESE PORTFOLIOS COMMENCED OPERATIONS AUGUST 27, 1997
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
69
<PAGE>
CORE PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRIME MONEY MARKET PORTFOLIO
-------------------------------------------------------------
FOR THE FOR THE FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 5, 1999 (1) MAY 31, 1999 MAY 31, 1998 (2)
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------
BEGINNING NET ASSETS.......... 3,765,002,688 $ 3,138,751,991 $ 0
OPERATIONS:
NET INVESTMENT INCOME....... 85,290,403 182,583,845 117,637,986
NET REALIZED LOSS FROM
INVESTMENTS............... (29,215) 36,033 (42,987)
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS... 85,261,188 182,619,878 117,594,999
--------------- --------------- ---------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS
CONTRIBUTIONS............... 2,104,831,490 4,309,002,882 5,373,694,156
WITHDRAWALS................. (1,842,939,761) (3,865,372,063) (2,352,537,164)
LIQUIDATING DISTRIBUTIONS... (4,112,155,605)
--------------- --------------- ---------------
NET INCREASE (DECREASE) FROM
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS........ (3,850,263,876) 443,630,819 3,021,156,992
--------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS...................... (3,765,002,688) 626,250,697 3,138,751,991
--------------- --------------- ---------------
ENDING NET ASSETS............. $ 0 $ 3,765,002,688 3,138,751,991
--------------- --------------- ---------------
--------------- --------------- ---------------
</TABLE>
(1) THE PORTFOLIOS CEASED OPERATIONS ON NOVEMBER 5, 1999
(2) THESE PORTFOLIOS COMMENCED OPERATIONS AUGUST 27, 1997
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
70
<PAGE>
FINANCIAL HIGHLIGHTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATIO TO AVERAGE NET ASSETS
--------------------------------------
NET INVESTMENT NET GROSS
INCOME EXPENSES EXPENSES (3)
<S> <C> <C> <C>
---------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
JUNE 1, 1999 TO NOVEMBER 5,
1999 (1)(2)...................... 5.16% 0.12% 0.20%
JUNE 1, 1998 TO MAY 31, 1999....... 5.27% 0.12% 0.20%
AUGUST 23, 1997 (4) TO MAY 31,
1998 (2)......................... 5.64% 0.12% 0.21%
PRIME MONEY MARKET PORTFOLIO
JUNE 1, 1999 TO NOVEMBER 5,
1999 (1)(2)...................... 4.91% 0.40% 0.40%
JUNE 1, 1998 TO MAY 31, 1999....... 4.98% 0.40% 0.40%
AUGUST 23, 1997 (4) TO MAY 31,
1998 (2)......................... 5.36% 0.40% 0.40%
</TABLE>
(1) CEASED OPERATIONS
(2) ANNUALIZED.
(3) DURING THE PERIOD, VARIOUS FEES WERE WAIVED AND REIMBURSED. THE RATIO OF
GROSS EXPENSES TO AVERAGE NET ASSETS REFLECTS THE EXPENSE RATIO IN THE
ABSENCE OF ANY WAIVERS AND REIMBURSEMENTS
(4) COMMENCEMENT OF OPERATIONS
71
<PAGE>
CORE PORTFOLIOS NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
1. ORGANIZATION
--------------------------------------------------------------------------------
Core Trust (Delaware) ("Core Trust") is organized as a Delaware business
trust and is registered as an open-end management investment company under the
Investment Company Act of 1940 (the "Act"). Core Trust currently has
twenty-one separate investment portfolios. These financial statements relate
to Prime Money Market Portfolio and Money Market Portfolio (individually, a
"Portfolio" and, collectively, the "Portfolios"), each of which was a
diversified portfolio. The Portfolios commenced operations on August 23, 1997,
and liquidated their assets and ceased operations at the close of business
November 5, 1999, in connection with the reorganization of the Stagecoach and
Norwest Advantage fund families. Interests in the Portfolios were sold in
private placement transactions without any sales charges to qualified
investors, including open-end management investment companies.
2. SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------
These financial statements are prepared in accordance with generally accepted
accounting principles, which require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increase and decrease in net assets
from operations during the fiscal period. Actual results could differ from
those estimates. The following summarizes the significant accounting policies
of the Portfolios:
SECURITY VALUATION -- Securities held by the Portfolios were valued as of
4:00 PM, Eastern Time, on each Portfolio business day, utilizing the amortized
cost method pursuant to Rule 2a-7 under the Act. Under this method, all
investments purchased at a discount or premium were valued by accreting or
amortizing, respectively, the difference between the original purchase price
and the maturity value of the investment over the period to the investment's
maturity.
SECURITIES TRANSACTIONS AND INTEREST INCOME -- Investment transactions were
accounted for on the trade date, interest income was recorded on an accrual
basis, including the amortization of premium and the accretion of discount,
and realized gain and loss on investments sold were recorded on the basis of
identified cost.
FEDERAL TAXES -- The Portfolios were not required to pay federal income taxes
on their net investment income and net capital gain as they were treated as
partnerships for federal income tax purposes. All interest and gain and loss
of the Portfolios were deemed to have been "passed through" to the
interestholders in proportion to their holdings of the Portfolios, regardless
of whether such interest and gains were distributed by the Portfolios.
ORGANIZATION COSTS -- The costs incurred by each Portfolio in connection with
its organization were capitalized and are being amortized using the straight
line method over a five year period beginning on the commencement of the
Portfolios' operations.
REPURCHASE AGREEMENTS -- Each Portfolio could have invested in repurchase
agreements. The Portfolios, through their custodian, receive delivery of the
underlying collateral, whose market value was required to exceed the
repurchase price.
3. ADVISORY FEES
--------------------------------------------------------------------------------
INVESTMENT ADVISER -- The investment adviser of each Portfolio was Norwest
Investment Management, Inc. ("Adviser"), a wholly owned subsidiary of Norwest
Bank Minnesota, N.A. ("Norwest"). Norwest is a subsidiary of Wells Fargo &
Company. The Adviser received an advisory fee from Core Trust with respect to
Prime Money Market Portfolio and Money Market Portfolio at annual rates of
0.40% and 0.20%, respectively, of the average daily net assets for the first
$300 million of average daily net assets of each Portfolio, declining to 0.32%
and 0.12%, respectively, of the average daily net assets of each Portfolio in
excess of $700 million.
4. OTHER FEES AND TRANSACTION WITH AFFILIATES
--------------------------------------------------------------------------------
ADMINISTRATION AND OTHER SERVICE PROVIDERS -- The administrator to Core Trust
was Forum Administrative Services, LLC ("FAdS"). FAdS received an
administration fee of 0.05% of the average daily net assets of each Portfolio.
Norwest also served as the custodian for the Portfolios and received a fee of
0.02% of the first $100 million of each Portfolio's average daily net assets,
declining to 0.01% of each Portfolio's average daily net assets in excess of
$200 million.
72
<PAGE>
NOTES TO FINANCIAL STATEMENTS CORE PORTFOLIOS
--------------------------------------------------------------------------------
Forum Financial Services, Inc. acted as Core Trust's placement agent but
received no compensation for its services.
Forum Accounting Services, LLC provided portfolio accounting and
interestholder recordkeeping services to each Portfolio.
5. WAIVED FEES AND REIMBURSED EXPENSES
--------------------------------------------------------------------------------
For the period ended November 5, 1999, the Adviser voluntarily waived a
portion of its advisory fees and FAdS voluntarily waived a portion of its
administration fees for Money Market Portfolio in the amounts of $432,338, and
$642,996, respectively. The Adviser and FAdS, at their discretion, may revise
or discontinue the voluntary fee waivers at any time.
73
<PAGE>
MONEY MARKET FUND INDEPENDENT AUDITORS' REPORT
--------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND PARTNERS
CORE TRUST (DELAWARE)
We have audited the accompanying financial statements of Prime Money Market
Portfolio and Money Market Portfolio (two portfolios of Core Trust (Delaware))
(collectively, the "Portfolios"), including the related statements of
operations, statements of changes in net assets and the financial highlights
for the periods presented. These financial statements and financial highlights
are the responsibility of the Portfolios' management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, for each of the aforementioned
Portfolios of Core Trust (Delaware), the results of their operations, changes
in their net assets and their financial highlights for the periods indicated
above in conformity with accounting principles generally accepted in the
United States of America.
[LOGO]
San Francisco, California
May 12, 2000
74
<PAGE>
LIST OF ABBREVIATIONS MONEY MARKET FUNDS
--------------------------------------------------------------------------------
The following is a list of common abbreviations for terms and entities which may
have appeared in this report.
ABAG -- ASSOCIATION OF BAY AREA GOVERNMENTS
ADR -- AMERICAN DEPOSITORY RECEIPTS
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AMT -- ALTERNATIVE MINIMUM TAX
ARM -- ADJUSTABLE RATE MORTGAGES
BART -- BAY AREA RAPID TRANSIT
CDA -- COMMUNITY DEVELOPMENT AUTHORITY
CDSC -- CONTINGENT DEFERRED SALES CHARGE
CGIC -- CAPITAL GUARANTY INSURANCE COMPANY
CGY -- CAPITAL GUARANTY CORPORATION
CMT -- CONSTANT MATURITY TREASURY
COFI -- COST OF FUNDS INDEX
CONNIE LEE -- CONNIE LEE INSURANCE COMPANY
COP -- CERTIFICATE OF PARTICIPATION
CP -- COMMERCIAL PAPER
CTF -- COMMON TRUST FUND
DW&P -- DEPARTMENT OF WATER & POWER
DWR -- DEPARTMENT OF WATER RESOURCES
EDFA -- EDUCATION FINANCE AUTHORITY
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FHA -- FEDERAL HOUSING AUTHORITY
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FRN -- FLOATING RATE NOTES
FSA -- FINANCIAL SECURITY ASSURANCE, INC
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
HFA -- HOUSING FINANCE AUTHORITY
HFFA -- HEALTH FACILITIES FINANCING AUTHORITY
IDA -- INDUSTRIAL DEVELOPMENT AUTHORITY
LIBOR -- LONDON INTERBANK OFFERED RATE
LLC -- LIMITED LIABILITY CORPORATION
LOC -- LETTER OF CREDIT
LP -- LIMITED PARTNERSHIP
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MFHR -- MULTI-FAMILY HOUSING REVENUE
MUD -- MUNICIPAL UTILITY DISTRICT
MTN -- MEDIUM TERM NOTE
PCFA -- POLLUTION CONTROL FINANCE AUTHORITY
PCR -- POLLUTION CONTROL REVENUE
PFA -- PUBLIC FINANCE AUTHORITY
PLC -- PRIVATE PLACEMENT
PSFG -- PUBLIC SCHOOL FUND GUARANTY
RAW -- REVENUE ANTICIPATION WARRANTS
RDA -- REDEVELOPMENT AUTHORITY
RDFA -- REDEVELOPMENT FINANCE AUTHORITY
R&D -- RESEARCH & DEVELOPMENT
SFMR -- SINGLE FAMILY MORTGAGE REVENUE
STEERS -- STRUCTURED ENHANCED RETURN TRUST
TBA -- TO BE ANNOUNCED
TRAN -- TAX REVENUE ANTICIPATION NOTES
USD -- UNIFIED SCHOOL DISTRICT
V/R -- VARIABLE RATE
WEBS -- WORLD EQUITY BENCHMARK SHARES
75
<PAGE>
Wells Fargo Bank, N.A., and certain of its affiliates provide investment
advisory, sub-advisory and/or shareholder services for the Wells Fargo Funds.
The Funds are sponsored and distributed by STEPHENS INC., Member NYSE/SIPC.
Wells Fargo Bank, N.A., and its affiliates are not affiliated with Stephens
Inc.
This report and the financial statements contained herein are submitted for
the general information of the shareholders of the Wells Fargo Funds. If this
report is used for promotional purposes, distribution of the report must be
accompanied or preceded by a current prospectus. For a prospectus containing
more complete information, including charges and expenses, call
1-800-222-8222. Read the prospectus carefully before you invest or send money.
DATED MATERIAL
PLEASE EXPEDITE
WELLS
FARGO
FUNDS
P.O. BOX 8266
BOSTON, MA 02266-8266
AR006 (5/00)
